What is community condemnation?

This is called eminent domain, also known as condemnation, and it occurs when the federal or state government–or even a non-governmental entity, such as a public utility–takes over private property for the public good or public use, without consent.

What happens if a condo association goes bankrupt?

The building deteriorates and the condo association doesn’t have enough income to keep going. The association would go bankrupt and the lenders would foreclose on the individual units. At some point, possibly, a developer would enter the picture, buy the foreclosed units cheaply, and put something else up, if the area is economically viable.

What happens to a condo when it is sold?

This may be through a formal offer to the whole condo at the same time (take it or leave it), or it may be through ‘block busting’ where a developer buys any unit that becomes available and rents them out to questionable tenants driving prices down and causing more people to sell.

What happens at the end of a condo lifecycle?

I think often what happens at the end of a condo’s lifecycle is a development company will buy all the units.

What happens if you stop paying your condo fees?

What often happens is that people first stop paying their condo fees. Then they move out and stop paying their mortgages. The building deteriorates and the condo association doesn’t have enough income to keep going. The association would go bankrupt and the lenders would foreclose on the individual units.

Can a condominium association dissolve into an apartment?

At some point, Associations could find it beneficial to terminate the condominium, sell the building to a single owner who rents the units as apartments, distributing the proceeds to unit owners. Under some circumstances, dissolution becomes the lesser of two evils, but we know of none in our state

I think often what happens at the end of a condo’s lifecycle is a development company will buy all the units.