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What happens to an unsellable unit?Aug 05, 2007


Just a theoretical question: What would a Board/building do if an investor was unable to either sell/rent out his unit and then stopped paying his monthly charges? If the Board was later also unable to sell, what could be the outcome? Has this ever happened in any of your buildings?

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What makes it unsellable - gabriell Aug 06, 2007


What, in your opinion, leads to the unit being "unsellable"?

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unsellable unit? - rfs Aug 06, 2007


Again this is a theoretical question - but based on a particular unit in our condo building.

The unit has been on the market seemingly forever, on a low floor, in the back, with views totally blocked-off and with lot-line windows as well. The market has apparently deemed it both unsellable and unrentable. Of course, perhaps anything can go at the right price.

But my question is, what ultimately could be the costs for the buildings' owners collectively, if the owner stopped paying monthlies?

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Common Charges - AdC Aug 06, 2007


Is this the only unit that has been left without selling, i.e., the original sponsor only has one unit left?

Obviously, you are missing on common charges, any assessments that you may impose. If the sponsor continues to pay the tax on its own, then the government will not take it over.

Why don't you try to negotiate the unit from the sponsor at a rockbottom price and possibly use it as gathering room / gymnasium or other amenity for the residents if the association may be able to afford it?

AdC

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not a sponsor unit - rfs Aug 06, 2007


Thanks for your email. This is not a sponsor unit, but one that an investor bought to flip, apparently.

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Mortgage option - Steve Aug 06, 2007


The investor probably wants too much for the apartment. A home is worth only as much as a buyer will pay for it. So if the seller has dollar signs in his eyes, he may not see the reality that he's asking too much.

Can't the corp place a lien on the apt (if a condo)? Or, if it's in a co-op, and if the owner has a mortgage, you'll have no prob getting money from him.

A mortgage agreement typically (though not always) stipulates that if the borrower falls behind in the money he owes the co-op by an amount equal to three months' maintenance (or more), then the co-op is to inform the bank.

If you do so, the bank will send a letter to the borrower saying, "Pay the co-op what you owe in 30 days or the mortgage is due in full." Works every time.

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It's a condo (nm) - rfs Aug 07, 2007



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it's a condo - rfs Aug 07, 2007


The previous message just bounced out of my hands and so has no info.

Anyway, the building is a condo- too bad for these potential circumstances. Nothing has happened yet, it's just a feeling I have that it might/could eventually turn this way.

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What is your recourse for a condo? - AdC Aug 07, 2007


Liens? Then, place a lien on the property since the investor refuses to pay common charges and possibly assessments in the future.

Obviously, if this is an undesirable spot, the future buyer may be as undersirable as the spot. Why do I say that? Because no one in his/her right mind will see an undesirable spot as "having potential." In fact, years ago, I saw an apartment like you described that was in "foreclosure" and was being sold for nothing at the time. My impression was, "even if they pay me to live here I will refuse." Places such as you describe are okay for offices, a superintedent's or staff apartment or recreational area. If you rent it, it will be a transient type of tenancy which you do not wish to have.

NOW, for those who wish to convert a Co-op to CONDO, pay heed in this case. It's not easy to get rid of such problems with a condo except liens and/or hope that the investor default on his/her taxes and/or mortgage so that the government or the bank may take the property over and may clean the liens on the property.

AdC



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Super's apt + unsaleable apt - BP Aug 07, 2007


Hi all. I thought I'd be away another week, but my vacation was cut short. I've just read all your posts. My comments:

1) Re: the super's apt - I don't know if a court would rule to have his brother move out since you've known for a year that he's living there and haven't done anything about it. He isn't using more a/c, utilities, etc. than the super and his family do, maybe a little more water, and you don't pay for his food, phone, etc. If he isn't causing problems and keeps a low profile, what's the harm? Just my opinion. I know the super's apt has no lease, but the Prop Lease does consider brothers/sisters part of an "immediate family." Did you check your contract/agreement with your super to see if it says who can live in the apt? If it doesn't say, and if you don't want the brother there, maybe you should put that stipulation in, and have your super sign a new contract every year. Check with your attorney on that. We don't have a "running" agreement with our super. It's up for renewal annually. If you're not happy with your super and are considering terminating him, that's another story.

2) Re: the unsaleable condo apt - There some reason why the owner can't sell/rent it - his price is too high, he isn't trying hard enough to sell/rent it, the apt is a wreck or badly needs upgrading. I think the association/board should be more concerned that the owner isn't paying his monthly charges. If he's seriously in default, have your attorneys address that. Selling/renting is the owner's problem. Your priority is collecting money you need for your operating account to pay bills and keep the condo's head above water.

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Sellability of unit - AdC Aug 06, 2007


Are you talking about one unit or his group of units with unassigned shares?

AdC

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