Converting to Condos

Q: I own a multi-unit building in Provincetown and I am thinking about converting it to condominiums. What do I have to do?

A: Hire an engineer to create a site plan and individual unit plans. The engineer will come to the site and measure each unit as well as the entire lot. When the engineer finishes, he/she will give you a preliminary plan. From that plan, you will decide which areas of the property will be exclusive to which units, where the parking spaces will be, and any common storage areas. You will then have an opportunity to mark up the plans. You should review them with your attorney and based upon that review, your engineer will amend the plans and make them final.

Next, work with an attorney to take the plan and draw up condominium documents. Your attorney will create a Declaration of Trust and a Master Deed. Part of the process will include a description of the units and a determination of the percentage of ownership for each unit. Your attorney will arrive at these percentages after you let him/her know what you intend to sell the units for. Your Broker can assist you with pricing the units based on recent sales. The percentages of ownership are based upon value.

Your attorney will also need you to provide: a master insurance policy, a description of the property, (i.e. is the heating oil, propane or electric, is it private septic or sewer, are there separate electric meters, are there any other costs associated with the common areas of the property? What rules would you like to see in the association (i.e. will weekly rentals be permitted, will pets be permitted, etc). Consult with your Broker when you are considering the rules and restrictions and when you are ready to create a budget. Your Broker can shed light on the reactions of buyers to certain rules.

When documents are complete, the attorney will record the Master Deed and Declaration of Trust with Barnstable County. At this time, you should establish a bank account for the Condominium Trust. 

Now you are ready to sell your units. It is best to complete this process before you list the units for sale. It will save you many headaches in the end.

The Broker Team at Atlantic Bay Sotheby’s International Realty has assisted countless clients with this process. If you are thinking of a conversion, contact us first. We can connect you with all of the necessary players to get your job done properly and efficiently.