It is a fact of life, at least in Massachusetts where I have been practicing real estate law for the past 42 years, that many Condominiums suffer from mismanagement. I have posted before about despots as Trustees, and some of the cavalier approaches they have taken with regard to FNMA/FHLMC requirements, as well as other investor requirements. The head person of the Condominium where I live refuses to do an annual budget, although there is ample provision in the Condominium Documents requiring same, and now we have a new FNMA rule that says every one of their condominiums needs to have a 10% reserve component in their budget, or the Condominium will not be approved for investment. My condominium common area fee has been exactly the same for the past eight years. That is ridiculous.
But this post is not really a rant about that kind of mismanagement. My condominium does have a Board of Trustees, and they do meet regularly. Unfortunately, that puts my Condominium way ahead on many others, whose owners have been victimized by the depressed real estate market and the many foreclosures which have removed unit owners, many of whom were Trustees, without any replacements. If this is REO property, no Bank I have seen has demonstrated a commitment to continuing management issues at the Condominium. The result of this really pressing situation is that many Condominiums in Massachusetts are "rudderless" and without any structure or power.
My law firm can help these Condominiums!!! During the past twelve months, we have assisted several Condominiums in getting "back on their feet". We do a fair amount of work representing REO servicers. When their sales agents find buyers for foreclosed-upon Condominium Units, the biggest stumbling block to getting the mortgage financed is the "state of the Condominium". Many of these Condominiums have no Trustees, of record, at the relevant Registry of Deeds. They have Unit Owners who are extremely "delinquent" in payment of common area fees. Utility companies are issuing shutoff notices, and all Unit Owners are in jeopardy.
Some of the services we provide in this area include:
•1. Reviewing the recorded Condominium Documents to see what type of governing organization is required.
•2. Meeting with concerned Unit Owners, and setting up documentation to establish a functioning Board of Trustees.
•3. Working with the Trustees to collect unpaid Condominium fees from Unit Owners. Most people do not realize that once this process is initiated, the Lender will step in to pay the arrearages to protect the Lender's secured position.
•4. Generally, render legal opinions and advice on the basis of a reasonable retainer, and extra compensation only upon extraordinary situations where advanced drafting or protracted litigation is required.
If you are involved with "Condominiums in Chaos", please contact me. We will gladly sit with you, on a no-obligation basis, to get your Condominium back on a path where the Unit Owners can buy, sell and refinance on an orderly basis.
Comments(1)