Condominium associations and unit owners once viewed termination as an unanticipated and unfortunate consequence of condominium ownership. Recently, termination has taken on new and different applications. Today, condominium associations and unit owners are considering whether termination is an economic positive or the best alternative to negative economic reality. Termination is a vital discussion when considering alternatives so that unit owners understand their options.
Termination as an Economic Positive
There is a premium on the “best location” or the highest and best use for property. Times, facts, and values change. These changes can present an opportunity to maximize the units’ value by selling the entire condominium to a developer. By selling, this creates a more lucrative opportunity, which translates into a higher-than-market value for unit owners who recognize and embrace this option.
Termination as a Response to Economic Reality
New statutory milestone reports and statutory structural integrity reserve studies may bring extreme economic pressure upon the unit owners, disproportionate to the unit values, such that payment of the resulting mandated expenses is not an economic reality. The Florida Condominium Act recognizes economic waste and other equitable factors as grounds for termination of a condominium. If other alternatives do not make sense, termination pursuant to the Condominium Act may be the best alternative versus imposing assessments that cannot be paid or assessments that cannot be justified by the facts.
To determine whether termination of your condominium can be considered under the Florida Condominium Act, please reach out to your Becker attorney.