Condo Complex under contract with HOA?

[Jake S.]

Hey everyone,

I have a Condo complex under contract (18 of 24 existing units) that would give me 75% ownership of the current HOA. Eventually I would like to buy the other 6 units up, of which each are owned individually.

I have experience with Apartment complexes, but have never been in this type of scenario with 75% ownership of an existing HOA.

Can someone help explain this to me?

Thank you!

[Kelly DeWinter]

First, Unless MN is different then 90% of the US, You do not 'own' the HOA, The HOA is a legal entity created at some point in time. you may have controlling votes in decisions when the HOA brings then to a vote, but unless the document created at the time of the formation of the HOA says something differently you are just a unit owner many times over.

Second, Depending on how the HOA was set up, The HOA may be under the Direction of a Property Manager

Third, You must follow all Federal,State,Local laws regarding the HOA

Forth You must comply with all HOA rules for each individual of your units regardless of how many you own

Fifth while it might be enticing to go all Pirate King, remember you have to follow the HOA rules or you may be subject to fines and lawsuits or both (In MD there is a case in the courts where a renter had problems with the unit owner and the the owners of the unit are being sued separately by the tenant. One unit owner owns 9 units and is facing 9 lawsuits.