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Condominiums on the Coast?

By
Real Estate Agent with Prudential Northeast Properties
In Midcoast Maine, we have a few new condominium projects.  Between Camden and Rockland on Penobscot Bay, my two main towns, there are 3 major projects that are of real interest.  Mills and hotels are the structures that have been condominiumized.  The Knox Mill, an historic Camden structure that had already been renovated by the credit card giant MBNA, is the largest development.  In Rockland, our best ocean view hotel, The Tradewinds, has converted some upper level suites to condos. Just up the street, the Narragansett Hotel has been redeveloped as condos. The City of Rockland is actually initiating a fourth project, as they contemplate the purchase of the Police Plaza building, to be shared with the Maine Lighthouse Museum.

I am very interested in the underlying principles of condos, and how they affect market value for the life of the property.  The legal structures that are built when a piece of real estate has the Condominium Act put upon it are of absolute importance to the buyer of a condo.  Imagine that the developer who condominiumizes real estate is like God.  When he snaps his fingers to Declare Condominiumization, he begins a small baby universe, in which he enacts many of the laws.  

The Declaration of Condominium dictates the future of the legal rights held by the owners.  Governance structure and ownership apportionment are two major features that are set up in this process.  

There are many issues that one must plan for in the creation of a condo.  When a condominium is first developed, the developer often holds a majority interest until more than half the units are sold, so he is the only vote that counts.  At some point, however, he might no longer hold any interest in the development, his end goal, and then he goes 'bye-bye'.  

Having a good look at the legal structure of a condominium, in addition to oooing over the view and aaahing over the granite counters, is a crucial process in buying a condo.  Anyone who is looking for a Buyer's Agent for condos in Maine is welcome to give me a call.  207-592-2420.