Holdout condo owners could get more for their units

Bill in the Florida House targets bulk buyers of condo complexes

TRD MIAMI /
Mar.March 25, 2015 02:20 PM

Two bills in the Florida House of Representatives and Senate could close a legal loophole that had some condo owners selling their units for under their original purchase price.

The bills targets bulk buyers of condo complexes who seek to convert the buildings into apartments. Under current law, a building’s condo status can be removed in certain situations, allowing investors to force any remaining tenants to sell their units. 

Although state law says these buyouts should pay fair market value, some owners end up getting paid less than the value of their mortgages, the Wall Street Journal reported.

The bill would have buyers pay 110 percent of market value or original purchase price — whichever is greater.

It would also prevent removal of a building’s condo status until the first mortgages on each unit is completed.

Florida’s condo statutes were amended in 2007 to allow for the bulk purchase of units to help developers take over run-down or storm damaged buildings. If 80 percent of a building’s tenants voted yes and less than 10 percent voted no, the developers could pay the holdouts fair market value and remove them, the publication reported.

The housing downturn stalled many developers’ plans to convert complexes to rental apartments, and some units traded ownership in the mean time. Now, developers are resuming their plans, causing the current owners to face buyouts that in some cases are much lower than their mortgages. [Wall Street Journal]Sean Stewart-Muniz


Related Articles

arrow_forward_ios
From left: Roberto Blanch, Dennis Eisinger, Sebastian Jaramillo, and Paul Kaplan

South Florida HOAs and condo associations prepare for a drop in collections

South Florida HOAs and condo associations prepare for a drop in collections
Russell Galbut and the Shelborne South Beach

Russell Galbut, WP Carey sell Shelborne South Beach

Russell Galbut, WP Carey sell Shelborne South Beach
10726 Southwest 7 Street, Dvir Cohen Hoshen and Omri Sachs (Credit: Google Maps)

Amid growing demand for university housing, Adam America buys multifamily complex near FIU

Amid growing demand for university housing, Adam America buys multifamily complex near FIU
?

Pompano upzones Ocean Boulevard site for 19-story condo next to city park

Pompano upzones Ocean Boulevard site for 19-story condo next to city park
Cement pour at Ocean 2000 site takes 13 hours, 240 trucks and 500 tons of steel

Cement pour at Ocean 2000 site takes 13 hours, 240 trucks and 500 tons of steel

Cement pour at Ocean 2000 site takes 13 hours, 240 trucks and 500 tons of steel
The Palm House Hotel

Palm House Hotel finally sells for $40M

Palm House Hotel finally sells for $40M
Jeff Greene plans 38-story condo project near Currie Park in West Palm Beach

Jeff Greene plans 38-story condo project near Currie Park in West Palm Beach

Jeff Greene plans 38-story condo project near Currie Park in West Palm Beach
Older condos in pricey country club communities sell for as little as $1

Older condos in pricey country club communities sell for as little as $1

Older condos in pricey country club communities sell for as little as $1
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...