Hay Legal Group PLLC

Creating Condominium Regimes

by Hay Legal Group

As Austin’s population continues to explode, many developers seeking to maximize lot space have leveled-single family homes and replaced them with two-unit condominium buildings. Additionally, many owners of multi-family buildings, such as apartment complexes and duplexes, are converting the buildings into condominiums, to allow for units to be sold separately and capitalize on the current seller’s market.

The process of establishing a condominium regime for new construction is similar to the process of converting an existing building into condominiums.  The Texas Uniform Condominium Act (“TUCA”) governs Texas condominium regimes, and the following documents must be in strict compliance with TUCA.

There are three sets of documents involved for each process:

-documents related to the condominium owners’ association;

-documents related to the Condominium Declaration, including a condominium survey

-documents related to conveyance.

A key distinction with conversions is that conveyances of the newly created condominium units are made subject to existing leases. A key distinction with new construction is that a transfer of the Owners’ Association management is likely to take place at, or soon after, closing, whereas conversions often involve the building owner maintaining control of management until a certain percentage of condominium units are conveyed.

Because of the strict requirements of TUCA, owners and investors seeking to create condominium regimes should consult with a real estate attorney and surveyor experienced with condominiums. Additionally, a commercial insurance agent will need to be involved in the process.

The Hay Legal Group PLLC prepares condominium documents on a flat fee basis, which includes filing fees with the Texas Secretary of State and the county clerk’s office. For more information on our firm and how you can engage us to represent you in your real property matters, please contact our office at 512.467.6060.

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