Preparing condo docs are an important step for condo conversions. In fact, you can not begin selling units within the building until you have completed and filed appropriate condo docs. What is required for this process and what should they include? Here’s a quick overview of condo doc preparation for MA condo conversions.
There are several documents required to form a condominium. These documents must be prepared according to standards and filed at the local registry of deeds, making them public record.
The master deed is what actually forms the condominium. It details the property, what components are considered common area, what areas are exclusive to unit owners, and what areas may be common but granted exclusive right of use by a particular owner. Unit owners often maintain a certain percentage interest in common areas, as outlined in this document. Floor plans and other detailed property specifications is helpful to include. Lastly, the master deed should also contain information on how the deed may be altered, if necessary, in the future.
Declaration of Trust
The declaration of trust is also referred to as by-laws. This document outlines the rules for the condominium. The following are a few examples of what it may include:
- Creation of the condominium trust.
- Formation of a board of trustees.
- Outline of voting rights and arbitration process.
- Condo fee payment policies, interest/penalties, and issuance of liens for non-payment.
- Maintenance of common areas.
- Rules and restrictions for usage of common areas.
- All rules and regulations pertaining to condo owners.
- Fannie Mae and Freddie Mac provisions to aid the financing of condo units.
An annual budget is important to potential buyers and potential lenders for units in the newly formed condo complex. It provides guidance and foresight on the assets and liabilities for the condominium complex. How much is expected to be received from condo fees? What portion must be used to cover common expenses and maintenance of common areas? What can be contributed annually into a reserve for future improvements? A healthy budget provides a better impression to potential owners and lenders.
Legal Assistance with Condo Doc. Preparation for MA Condo Conversions
It is important to have legal assistance for condo doc. preparation for MA condo conversions. Proper preparation is critical to maximizing the value of your condo units and minimizing your own liabilities in the process. Contact Martino law Group to discuss your condo conversion needs and how we can help with the legal steps required.