Is my apartment going condo?

March 21, 2006 8:48 PM

My apartment is going condo. Unless it's not. Please help me be less confused.

So, I got this odd letter from my landlord, stating that they'd done an audit of all their resident files and had noticed that some leases, including mine, were lacking an addendum. The addendum, which I'm asked to sign, states that the complex had been approved by the city as a condominium project, that my unit might be sold, and if it is my lease might be terminated, but that I'd be given notice and right of first refusal to buy.

I'm trying to figure out if this sounds like a routine precaution against the possibility that they might someday want to take the place condo, or like "Oh, shit, we want to go condo tomorrow but we forgot to write leases that let us do so", or something in between.

I doubt that I'd want to buy, and I don't want to move -- ideally, I'd like to just keep renting. If the complex does go condo, does that imply that every unit will be offered for sale, or do they sometimes keep some units for rent and sell others? Do I have any rights (I'm in California), or ability to influence the situation?

(I assume that if I don't sign the addendum they'll simply decline to renew my annual lease when it comes up and I'll have to move).

posted by bac to home & garden (15 comments total)

Don't sign. Possibly, they can't terminate the lease if you don't. Instead, ask what's in it for you for signing.
posted by orthogonality at 8:56 PM on March 21, 2006

(I assume that if I don't sign the addendum they'll simply decline to renew my annual lease when it comes up and I'll have to move).

Most likely, yes. It sounds to me like they are probably planning on "going condo" in the near future. If you don't like the terms of the addendum, you can probably negotiate something (like an extra 30-60 days before you have to leave, etc).
posted by MrZero at 9:16 PM on March 21, 2006

Of course, whatever you negotiate MUST be in the addendum, signed by both you and the landlord, and a copy retained by you.
posted by MrZero at 9:17 PM on March 21, 2006

This new addendum isn't being tacked on just for the possibility of "maybe going the condo route someday." If that was the case, usually the text would be added on when your term renewed. Just think about it: how timely that their "file audit" just happens to coincide with the city council's condo approval!

I'm in the business and I'd say there's a 99% chance that that the building is going to be converted ASAP. Certainly smells that way.

If this is a 100% residential building (i.e. no commercial space on ground level, etc..), it's likely that all of the units will be converted into condos to be sold. There are exceptions from time to time, but this is how it usually goes.

I have no clue on CA tenant rights, but thinking logically, it might not be a bad idea to start checking out other apartments if you're not really interested in buying your current unit.
posted by peewee at 9:18 PM on March 21, 2006

If it's not about to be converted, then it's about to be put up for sale and they know they'll get a better price if everything is lined up for the buyer to go condo if they so chose (which they probably will, because the ROI is much better).
posted by Good Brain at 9:26 PM on March 21, 2006

You're overlooking the obvious here: moolah! Someone is preparing to cash out. They need your signature on the dotted line.

As a matter of priciple, you shouldn't be signing away rights without getting something worthwhile in exchange. In this situation, the value of your signature is much higher than usual. Bargain accordingly.

If you're okay with leaving, for instance, trade your signature for a your own addendum of choice. A longer notice period (3months? 6?) to give you time to shop around after they terminate? A cash stipend for moving expenses? Pick something that makes you comfortable signing, and start packing because I'll lay odds that this deal is very close to done.
posted by nakedcodemonkey at 9:37 PM on March 21, 2006

I live in Las Vegas, 80% of all the places that were nice apartments 5 years ago are now condos.

That's a bad trend.

People get thier credit ruined for all sorts of reasons. Medical expences, divorce, anything. Many are good people with just a bad series of financial events in life including the few that have had identity fraud commited against them. Then they have a hard time getting a good mortgage (if it's even possible without a huge down payment) if they want to and end up paying way more than the people who can actually afford it.

Apartments in good neighborhoods are becoming more rare these days.

I feel that many rentals in good areas are using more stringent credit checks for renters because they anticipate the apartments going condo.

This is a bad trend for young people who have not yet decided where they want to set up roots and it will force them to live in bad neighborhoods.

I don't really have an answer for you, but I feel your pain.
posted by SwingingJohnson1968 at 10:32 PM on March 21, 2006

Thanks for the insight, all.

This is really kind of odd. I've just googled around quite a bit, and read through the last year's worth of City Council minutes, and whereas another proposed condominium conversion in this city received extensive debate and news coverage (with the city council even going so far as to debate banning conversions), I see zero evidence that this property has even applied for, let alone received, approval to convert. I also note that, upon more careful reading, they're not actually asking for my signature on the addendum; they're simply asserting a "change in terms in tenancy". I haven't yet dug out my lease to see if that seems remotely kosher.

In any event, I think I'll give city hall a call tomorrow and see if they can tell me if the property has applied for conversion. If they haven't, I guess I'll figure that it really is just a precaution against a possible future attempt to convert and try not to worry about it -- peewee, does that seem sane?
posted by bac at 10:50 PM on March 21, 2006

Do not sign a thing without learning your statutory rights as described by local and state law!

Chances are very high you have a lot of rights they'd rather you didn't have, so they want your signature. Similar experience I had in LA, when my building was bought by a guy who planned to demolate and build new condos. I was the only one there with enough brains to refuse to sign, until the owner himself visited and gave me all kinds of goodies including 2 months free rent and a hunk of cash for moving expenses.

Do not discount the idea of buying. Frequently, laws are such that tenants get extremely low prices on a conversion that amounts to a windfall. Financing may be available that can't be sneezed at. Inform yourself!

Most important thing to understand (this is what screwed my neighbors): You do not have to sign a contract to get the rights the law grants you! This was the line of bull given us in LA. Everyone else signed, because they were told this was to insure they'd get their required moving allowance. The city office told me I did not have to sign. I told the neighbors. They didn't listen.
posted by Goofyy at 10:58 PM on March 21, 2006

We were involved with a condo conversion project last year in SoCal.
1. It may take 1-2-3 year/s before the plan will actually goes through.
2. Do consider very seriously purchasing your unit:
- They may give you spacial, favourable terms
- You may buy lower than you'll be able to sell later
- This may be your chance of switching from tenant to owner (always a smart move)
posted by growabrain at 12:13 AM on March 22, 2006

Have a lawyer look at both your lease and the addendum, before you sign anything.
posted by arco at 4:04 AM on March 22, 2006

Have you talked to other tenants? Getting legal advice and negotiating with the landlord as a group might save money and increase your bargaining power.
posted by TedW at 5:35 AM on March 22, 2006

Of course, be aware that not signing the addendum might mean you get the boot when your lease is up.

If you think you'd have your apartment sold between now and then, not signing it is smart. Otherwise, signing it is smart.

I guess it all depends on local codes, though...
posted by shepd at 7:40 AM on March 22, 2006

Ask to be paid. e.g. I'll sign the contract if you give me 5 grand.
posted by malp at 7:48 AM on March 22, 2006

If you like the place, don't dismiss the idea of buying it, if you can get advantageous terms.
posted by theora55 at 10:39 AM on March 22, 2006