Developer Involuntarily Dissolved, Never Sold 5 Limited Common Area Parking Spaces

KevinE (Illinois)
Posts: 4

Posted:

I am a member of our Condo Association Board, located in Chicago, IL.

Our Developer, an LLC, was involuntarily dissolved in 2009. A unit owner managed the building from 2009 until our association took over in 2013.

We have a 13 unit building and all units have been sold since 2008, none to the developer.

We have Limited Common Element Parking, and the developer only sold 8 of the 13 limited common element parking spaces, leaving 5 spaces that were never sold.

Our association pays all of the property taxes for the common areas.

The Limited Common Element Parking can only be transferred to/between unit owners and it is recorded as an exclusive right to use the space on their title/deed.

We are trying to determine the ownership of the 5 LCE parking spaces.
Do they still belong to the developer or are they now property of the association since the association was turned owner, they are limited common elements, all units have been sold, and the developer has been involuntarily dissolved for 8 years?

Thank you for your time.

NSM LLC

KerryL1 (California)
Posts: 14,550

Posted:

Interesting question, which may need an attorney's advice.

Our HOA has parking spaces that belong to owners for their exclusive use and such is recorded on their deeds. The developer retained one space for several years after turnover. He finally sold it to, as required by our CC&Rs an Owner here.

Big difference between yours & ours is that your developer no longer is in business. That's why this feels like a question for an attorney.

(Btw, one of my favorite years was spent renting in a 22 story high rise at 3100 N. Lakeshore Dr. in the early '90s. It is exactly why my spouse & I retired years later to an urban high rise on the water!)

KevinE (Illinois)
Posts: 4

Posted:

Thank you for the response Kerry, would love to have a place right on the water, that's the plan for our retirement as well! Hope retirement is treating you well.

We have been using an attorney, he has not been able to offer up any useful information so far, so I figured I'd reach out for help elsewhere.

LetA (Nevada)
Posts: 2,679

Posted:

It appears that some condo owners purchased parking rights and some did not.

I would go to the recorders office and look at the plats. Pull the deeds on the units that did opt in to parking and the ones that did not.

Was there an additional charge for parking rights? The answer must be in your community documents.

KevinE (Illinois)
Posts: 4

Posted:

Thank you for the response LetA.

We have pulled the plat and all of the deeds, there are 5 spaces that are unaccounted for on any deed.

There was an additional fee for the limited common element parking rights, so not every unit purchased a space originally.

The developer never sold 5 spaces and was involuntarily dissolved in 2009 after selling every unit in the building, the developer does not own any units. The condo was turned over to our association in 2013 and we have paid all of the property taxes since. Since the developer no longer exists we were trying to determine if those spaces belong to the association, so we can transfer them to unit owners that would like to purchase a space now.

KerryL1 (California)
Posts: 14,550

Posted:

Wish I could offer more, Kevin, maybe someone else can. All our residential parking spaces are exclusive use common areas and are not part of the taxes that Owners pay on their condo units. but it sure would be nice for your HOA to get a cash infusion from the sale of the spaces.

We're treating our retirement very well, thank you!

JohnC46 (South Carolina)
Posts: 14,265

Posted:

My first blush is the unsold spaces become common property.

GreggT (Florida)
Posts: 77

Posted:

Possibly I am mistaken but I know in Florida a Limited Common Area has to be tied to ownership. If the developer does not own anything in the complex, the Limited Common Areas should become Common Areas owned by the association.

LetA (Nevada)
Posts: 2,679

Posted:

If you first attorney is just an HOA attorney, I would ask a real estate attorney.

Another question, are the parking spaces assigned a parcel number by the county assessor?

Does your HOA charge a separate assessment for parking?

On the surface it sounds like the HOA owns the unsold parking spaces, but I'm not an attorney.

CjC
Posts: 210

Posted:

I would think the county would be able to tell you who pays the property taxes on them.

KevinE (Illinois)
Posts: 4

Posted:

Thanks for responding again LetA,

The parking spaces are limited common element parking and they are listed on the unit's deed as an exclusive right to use that certain parking space.

Taxes are paid for the entire common area, including the limited common element parking, by the association.

There is no additional assessments for parking.

We have just started dealing with a new real estate attorney as our last one was not familiar with this type of issue.

Thanks again,

Kevin

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By KevinE on 08/07/2017 11:52 AM
I am a member of our Condo Association Board, located in Chicago, IL.

Our Developer, an LLC, was involuntarily dissolved in 2009. A unit owner managed the building from 2009 until our association took over in 2013.

We have a 13 unit building and all units have been sold since 2008, none to the developer.

We have Limited Common Element Parking, and the developer only sold 8 of the 13 limited common element parking spaces, leaving 5 spaces that were never sold.

Our association pays all of the property taxes for the common areas.

The Limited Common Element Parking can only be transferred to/between unit owners and it is recorded as an exclusive right to use the space on their title/deed.

We are trying to determine the ownership of the 5 LCE parking spaces.
Do they still belong to the developer or are they now property of the association since the association was turned owner, they are limited common elements, all units have been sold, and the developer has been involuntarily dissolved for 8 years?

Thank you for your time.

NSM LLC

If you have limited parking owned by the HOA then the HOA can determine how it would want to handle following the CCR's as the owner of the property. You potentially as an HOA have and opportunity here ... check with an attorney to see if you can "rent" your HOA owned parking spaces. The benefit to the HOA is the income from those "rented" spaces could help defray all other owners assessments.

KerryL1 (California)
Posts: 14,550

Posted:

Janet got m to thinking that perhaps a long-term

KerryL1 (California)
Posts: 14,550

Posted:

Nuts, meant to hit delete above

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By JanetB2 on 08/10/2017 12:40 AM

Posted By KevinE on 08/07/2017 11:52 AM
I am a member of our Condo Association Board, located in Chicago, IL.

Our Developer, an LLC, was involuntarily dissolved in 2009. A unit owner managed the building from 2009 until our association took over in 2013.

We have a 13 unit building and all units have been sold since 2008, none to the developer.

We have Limited Common Element Parking, and the developer only sold 8 of the 13 limited common element parking spaces, leaving 5 spaces that were never sold.

Our association pays all of the property taxes for the common areas.

The Limited Common Element Parking can only be transferred to/between unit owners and it is recorded as an exclusive right to use the space on their title/deed.

We are trying to determine the ownership of the 5 LCE parking spaces.
Do they still belong to the developer or are they now property of the association since the association was turned owner, they are limited common elements, all units have been sold, and the developer has been involuntarily dissolved for 8 years?

Thank you for your time.

NSM LLC

If you have limited parking owned by the HOA then the HOA can determine how it would want to handle following the CCR's as the owner of the property. You potentially as an HOA have and opportunity here ... check with an attorney to see if you can "rent" your HOA owned parking spaces. The benefit to the HOA is the income from those "rented" spaces could help defray all other owners assessments.

Great idea on the renting.