investment property purchase and sales. condo conversion what is the process?
TRANSCRIPT
INVESTMENT PROPERTYPURCHASE AND SALES
CONDO CONVERSION
What is the process?
WHO IS INVOLVED?
Who is involved in the process of condo conversion?
OUR FIRM
Master Deed
Declaration of Trust
Rules and Regulations
Unit Deeds
Limited Warranty, if any
6(d) Certificate
Tax Letter Agreement
Representation for the owner in the sale of each unit.
PREPARE PREPARE REPRESENT
ENGINEER
ARCHITECT
SOMERVILLE: CONDO REVIEW BOARDThe Board is responsible for conducting hearings and for surveying and updating
information concerning rental units in the City.
The Condominium Review Board is comprised of five members: • two home owners;• two tenants; and• one elderly, handicapped or
low or moderate income Somerville resident (chosen by the Mayor and confirmed by the Board of Aldermen).
SOMERVILLE: CONDO REVIEW BOARDPERMITS REQUIRED
PERMITS REQUIRED FOR:
• the conversion of rental units to condominiums
• the sale of a condominium unit, which has most recently been a rental unit.
• If the unit being converted to condominium use has never been rented, a Certificate of Exemption is issued.
FIGURE OUT YOUR TIMING
TIMING TO DRAW UP PLANS
TIMING TO PREPARE DOCUMENTS
ABOUT ONE MONTH ABOUT ONE TO TWO WEEKS
THINGS TO REMEMBER…
documents should not go to record until after the units are under agreement as the buyer’s counsels may want to review and make changes to them.1
2
Documents should not go to record until after the units are under agreement as the buyer’s counsels may want to review and make changes to them.
Avoid costs for any Amendments, if possible.
COST
COST FOR
PLANS
CLOSING COSTSELLER
REPRESENTATION COST
RECORDING COST
DOCUMENT PREPARATION
COST
COST FOR
DOCUMENT
TO “TRUST” OR NOT TO “TRUST”
TYPES OF TRUSTS INCLUDE. . . .
1
2
3
REALTY TRUST
IRREVOCABLE TRUST
REVOCABLE TRUST
TO “TRUST” OR NOT TO “TRUST”
CREDITOR PROTECTION ESTATE PLANNING
CREATING FLEXABILTY FOR THE SELLER WHEN BUYING A HOME
SUBJECT TO SUITABLE HOUSING
CREATING FLEXABILTY FOR THE SELLER WHEN BUYING A HOME
EFFECTIVE EMPLOYMENT OF USE AND OCCUPANCY AGREEMENTS
FLEXIABLE CLOSE DATE
• What is it and how does it work?• How can it help me?• What are the terms?• Who decides the terms?• Will I be forced to close if I can’t
find suitable housing?
COMMITMENT DATES WHEN BUYING AND SELLING
• Why are these dates important?• Who should obtain their commitment
first? My buyer or seller?• Why?• What if the buyer needs a mortgage
commitment extension?
YOUR EXPERT REAL ESTATE COUNSEL OFFICES IN MILFORD & BOSTON
ALI ALAVIT: (877) 552-2529F: (877) 318-3192C: (508) 400-6162
MILFORD OFFICE
284 Main Street
Milford, MA 01757
BOSTON OFFICE
20 Park Plaza, Suite 454
Boston, MA 02116