Thursday, May 28, 2009

Negligent Conversion?

Is the Condominium Converter Liable for Failing to Properly Assemble the Parts of a New Community?

“Negligent conversion” is another way of saying that mistakes were made when joining all of the required pieces of a conversion project together. The converter of an apartment building into condominiums basically has three choices under the existing law in California: (1) Rehabilitate the buildings so that they are in a “like new” condition. (2) Provide cash to the association to offset any deferred repairs, or (3) Set the assessments high enough so that the association will collect enough working capital in time to perform needed repairs. While some combination of these three will work, the converter cannot choose to do “none of the above” as in, do only a few repairs, underfund the budget for what is left to do, and keep assessments artificially low...

To read this entire article, click on the title link above...

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