Condominium conversion can be a complicated process. Local, state and federal regulations can make the entire ordeal challenging for both the new and experienced. Plus, dealing with all the title companies, attorneys, surveyors and various city departments only serve to make everything even more confusing. It is important to take the time to consider a few practical questions before launching into the conversion process. Answering these questions now will help you be prepared for each step of development and avoid any costly surprises that could emerge during the conversion process.
The first step is to determine whether a condominium conversion is even legally possible. Under Colorado law, all conversions must comply with Colorado’s Common Interest Ownership Act. This requires owners to alert all tenants of the intent to convert at least 90 days before any work is scheduled to begin. Additionally, the tenancy can’t be terminated before the existing lease ends. Because of this, developers will really want to consider the timing long before the conversion begins and change any existing lease timings accordingly.
Will it be approved by the Colorado Real Estate Commission?
Any projects with more than 20 units will have to comply with Colorado’s Subdivision Developer’s Act (SDA). The SDA requires registration from the Colorado Real Estate Commission (CREC) before any negotiators or execution of unit contracts starts. The CREC must also approve or reject the registration application within 60 days. The detailed application should include specific information about anyone with a significant financial interest in the project, drafts of the proposed condo plan, the sales contract, reservation forms and a disclosure statement given to each prospective buyer. The disclosure statement must include a list of the available utilities, amenities, fees, dues and any other applicable aspects. The CREC could choose to deny the project if it doesn’t meet their standards. If that happens, it’s back to the drawing board.
Is conversion feasible?
Many existing multi-family apartments cannot be converted to condos under contractual provisions until the state of repose ends at the end of the six- to eight-year term. If this does apply, then the conversion cannot be completed until that time has passed. If there aren’t any restrictions on conversion, developers should then consider whether the space will even be suitable for condos. For example, it may be necessary to restructure the entire sub-metering if it doesn’t already exist. Expect to also plan to add any amenities the targeted unit purchasers will expect. Consult a professional general contractor in Littleton, CO to better determine what is feasible.
Call Harrison Custom Builders, Ltd. to create the perfect condos
Ready to get started? Then call Harrison Custom Builders, Ltd. today. We’re here to help you create luxurious condo layouts your future residents will be sure to love. Our remodeling services will help you create comfortable and stylish condos that will attract buyers to the community. Contact us today to learn more about how a general contractor in Littleton, CO can help with your upcoming condo conversion.
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