Posted by John Merchant on March 06, 2005 at 10:24:33:
I’d recommend you talk to some reputable local condo builder/developer to see what he’d tell you.
Having the same thoughts myself recently, I talked to a friend who’s developed and built probably 200+ apt. complexes.
His answers were very illuminating, saying he no longer does ANY condo conversions, because he doesn’t know of any such where the developer hasn’t been sued !
Yes, sued, and by the buyers, once the seller is out of the property. Seems the buyers, once they’re all happily ensconced in their new homes, seem to find all sorts of defects and problems in their homes and then join together to attack the buider/developer.
So nowadays he sells as coop units and he stays in as an owner so he knows what’s going on with his buyers and the property.
As for the costs of forming the condo association and its bylaws and procedures, any local large law firm’s RE and business section lawyers can give you the legal costs and timing involved.