Condo Conversions
Converting your property to a condominium can be a complicated process. Our firm has experience assisting both first time developers with small properties and more experienced professionals dealing with large scale condominium/townhouse projects. Our office will help you obtain NJ state approvals, prepare the condominium documentation and conduct the closings when the units are approved for sale. Whether you are building on vacant land or converting an existing building, our firm can expedite your journey through the condo conversion process. Call us today for a free consultationProvided below are some frequently asked questions about condo conversions:
How do I convert my building to condominiums?
After consulting with this firm and determining that a condo conversion is the right step for you and your property, this office will prepare the necessary paperwork to submit to the State of New Jersey, Department of Community Affairs (“DCA”) for the conversion. Once the DCA approves the conversion, your building is considered a condominium and you can may begin marketing and selling the apartments as condominiums. A Master Deed must be filed with the County Clerk’s Office before the building will be considered to be a condominium.What is in the Master Deed?
This office will prepare the Master Deed for you, which is a comprehensive document encompassing all of the documents needed for the establishment of the Condo Association as well as the rules and regulations of the Condominium. It provides a description of the building and the units, voting rights for members of the Condo Association and determines how the Condo Association will be established. Floor plans for each unit, basement and garage (if applicable) are included in the Master Deed as well as a proposed budget and proposed maintenance for the Condo Association. If your building consists of 9 units or more, you will be required to provide a full Public Offering Statement, which requires more documentation.How is the Condominium Association Established?
The Master Deed includes the Certificate of Incorporation for the Condo Association, which organizes the Condo Association as a non-profit organization and defines the Condo Association’s rights and powers.What is in the Bylaws?
The Bylaws is a document which sets up the rules and regulations that govern the Condominium Association and the unit owners. It establishes voting and membership rights. This document will also provide for any fees each unit member will pay to move into the Condominium. It also states the powers of the Board of Directors: to employ a management company, fine unit owners for late fees, hire accountants or attorneys and conduct business for the condominium.Does the town where the property is located have any regulatory power?
No, condo conversions are exclusively regulated by the state. The city is not involved in the process. However, if there is an existing structure on the property, the number of units you may convert is limited to the amount for which the property is zoned. For example, if the building is a six family property, you may only convert to six condominium units. In this case, if you wanted to make the property seven condominiums, you would have to have the property rezoned to be a seven family property.Similarly, a developer may only build the number of units that the property is zoned for. Anything additional would have to be brought before your town’s zoning board. In addition, any illegal apartments, e.g., a basement apartment which is not properly zoned cannot be counted.
What if there are tenants living in the apartments before the conversion?
Conversions are most easily completed where the building is empty and there are no tenants. If there are tenants, this firm will assist you in providing proper notification to each tenant of your intent to convert and deal with tenancy issues. While condo conversions are exclusively regulated by the state, for tenancy issues, the municipal rent control board, agency or officer is involved.Please feel free to contact this firm for additional information regarding the conversion process.