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Our declarant wants to buy units and maybe entire building back

Started by BonnieG1 • 10 replies • 1282 views

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BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Although we are not under declarant control, Our documents state that before a unit can be sold it must be first offere to the declarant in writing. If the declarant declines or does not respond within 30 days that the unit can be sold to someone else but not for better terms that the declarant was offered.

We are concerned the Declarant who owns the adjacent Care Center may want to use the units as Assisted Liing Units. Our Vice President checked on this and they can have a certain numbers of units designated as assisted living without State oversight.

We had an information gathering session with officials of the declarant. They mentioned the possibility of buying the building back from us at some time in the future. From what they said at the meeting I know they want this building badly. But we have to have 75% of the owners and all first mortgagees agree to the sale of the building

I am so glad we recently hired an Associaiton Lawyer.

Has anyone on this site ever gone through anythig like this. Have you ever thought of selling the entire building?

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Bonnie

From your previous posts it seems you have a unique and symbiotic relationship with the building/nursing home next door. Correct me if I am wrong. It is a nursing home/hospice whatever and your two buildings are connected via a tunnel and share other things like a janitor and more. Am I correct?

If I am correct, it seem to me the original declarant/developer might well have believed both buildings would be used for the same purposes but it did not work out so he ended up forming a Condo Association and "selling" units in your building. He eventually turned over control to your association but he protected himself if in the future (the buy a unit clause) in case his original idea panned out. Am I still understanding this correctly?

Thanks

BonnieG1 (Nebraska)
Posts: 1,186
Posted:
YOu are correct about our buildings connected by a tunnel. The nursing home on the North side and the Condominium on the South side.

You may be correct about the Declarant's original plans. I was wondering why that clause about giving the Declarant the first right of refusal was in our documents.
I know that our documents state the condominium is to be a burden and a benefit to the Declarant.

I also do not know of any condominium owner who is not upset with the idea of the Declarant (a church organization) buying units in our building.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
YOu are correct about our buildings connected by a tunnel. The nursing home on the North side and the Condominium on the South side.

You may be correct about the Declarant's original plans. I was wondering why that clause about giving the Declarant the first right of refusal was in our documents.
I know that our documents state the condominium is to be a burden and a benefit to the Declarant.

I also do not know of any condominium owner who is not upset with the idea of the Declarant (a church organization) buying units in our building.
GlenL (Ohio)
Posts: 5,491
Posted:
Bonnie, has the Board entertained the idea of amending the documents to remove that section?
Studies show that 5 out of 4 people have problems with fractions
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Glen, yes we have considered the idea of updating the entire document. I have to leave for work soon so I don't have time to review our documents at this time, but there is one section requring 100% yes vote to be amended.

If we had broken away a few years ago (there was a vote, but the vote was too close to be an amendment and also the vote just gave the Board the authority to do what the documents gave the Board the authority to do) we would not be having this problem now. I was not on the Board at that time.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Bobbie

You might just consider a backup plan of like how much would you sell for. Not that you want to move, but many things in life do have a price even if the price is absurd.

BonnieG1 (Nebraska)
Posts: 1,186
Posted:
My first thought when I heard about the Declarant's plan to buy units was "I will move and they can buy my unit" But financially that would not work for me. I still have a mortgage of around $28,000.00 and it is valued only at $33,500. Plus I just put in a new airconditioner last year that I am still paying on.

I figure if they buy us out, My mortgage would be paid off and I would have enough left over to pay off my credit card and doctor bills plus have a few thousand dollars left so I am just going to bide my time and see what happens.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Bonnie

So what is your price...$50K....$60K.....LOL
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Do you mean the price I can sell my unit for or my cut afte building is sold?

I probably couldn' sell for much over 30K.

My cut if the building is sold should be betweet 59K and 100K. Thus I am staying put for a while to see what actually happens.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
John, I didn't pay attention to your LOL. Sorry.

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