House of Representatives

HB 2446

condominium conversion; disclosure

Sponsors: Representative Leff

 

DPA

S/E

Committee on Commerce and Economic Development

DPA

S/E

Committee on Judiciary

DPA

Caucus and COW

X

Third Read

 

 

As Passed the House

HB 2446 requires a person who converts an apartment complex to a condominium to record the change in use at the appropriate county recorder's office.

 

Current Status

The Commerce and Economic Development Committee adopted an amended strike-everything amendment to require the real estate subdivision report to disclose the conversion of a multifamily rental property to a condominium property complex, including the date the original construction was completed.  In addition, the declaration must provide disclosure as outlined in the bill.  The Judiciary Committee adopted the strike-everything amendment as amended in the Commerce and Economic Development Committee.  The Committee of the Whole adopted the Judiciary Committee amendment.

 

History

            Although an apartment building is constructed according to the applicable building code, it is utilized as a rental property, thereby sustaining greater use and possibly more abuse than privately owned real property, such as a condominium.  Some developers and private individuals are purchasing rental apartment complexes and converting them to condominiums that are being sold to private individuals.  Title 33, Section 1202, provides:

"Condominium means "real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of the separate portions.  Real estate is not a condominium unless the undivided interests in the common elements are vested in the unit owners." 

 

Amendments

The CED Committee adopted a strike-everything amendment that was further amended:

·          Requires the Department of Real Estate subdivision report to disclose when a multifamily rental property is converted to a condominium property, and provide the date the original construction was completed.   

·          Requires the declaration to provide disclosure regarding the conversion as outlined.

 

The Judiciary Committee adopted the strike-everything amendment as amended by CED: Requires disclosure to be included in the subdivision report and the declaration.

 

The Committee of the Whole adopted the Judiciary Committee amendment.

 

 

---------- DOCUMENT FOOTER ---------

45th Legislature                    

Second Regular Session        2          April 24, 2002

 

---------- DOCUMENT FOOTER ---------