Quote:
Originally Posted by drcoastline
Again, a condominium is a form of ownership not a type of building. Technically control transfers when 51% of the units are sold as the majority vote is now in the hands of the unit owners not the developer. The developers control will diminish as each unit gets sold off. When 51% is sold off the developer still holds the largest investment in the association property, so the by-laws are written in such a manner as to protect the developer. This is designed so the new owners can not come in and take control of the property..
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I once bought into a condo building.
-Several years later, owners still hadn't received any financial statements or had an annual meeting.
-When we did get limited records (only with a lawsuit) it showed we were flat broke and all our money continued to flow to a management company which had been fired long before.
-Also the Developer hadn't been paying dues on his own third of the building and had been 'voting' himself in as President and on all other matters acted unilaterally, despite the fact that units in delinquency did not have that right per the by-laws. He was a real piece of work.
-A true mess. Quorum was rarely achieved. Owners either stopped paying dues altogether and foreclosed and/or turned on one another.
-Meanwhile, for several years the roof continued to leak because the 'fired' management company had been putting holes in the worn out bitumen. I witnessed them doing a lot of work inside the Developer's units. Three of my rooms had the ceilings caving in and there was a literal waterfall traveling down the main entryway steps at one point. The central heating boiler was left on one summer and it was about a hundred degrees inside the units. Trash everywhere. Things falling apart.
-The place should have been condemned, but for various reasons the owners collectively did not feel inclined to consolidate as one and fix the problem.