PA Condo/Planned Community Corner (June 2007)June 2007 In The Zone
When all of the land is gone, how will developers provide homes to those individuals who desire to be homeowners? Developers are turning to existing buildings they can convert into condominiums, such as vacant warehouses or occupied apartment buildings. If a developer converts an existing apartment building into condominiums, there is a specific procedure they must follow under the Pennsylvania Condominium Act. The developer is required to give the existing tenants notice at least one year prior to the date they intend to convert the apartments to condominiums thereby requiring the tenants to vacate the premises. At least thirty days prior to giving the tenants notice of the conversion, the developer is required to have a meeting with the tenants and explain to them their rights as a tenant during the conversion. For example, under the Pennsylvania Condominium Act, the developer shall offer to convey each unit to the tenant who leases that unit for a period of six months following the date of the conversion notice. If the tenant fails to purchase the unit during this time period, the developer may offer to sell the unit to a third party; provided, however, the developer may not offer the unit for sale on terms more favorable than the terms offered to the tenant.
If you are interested in learning more about condominium conversions, please contact Carrie B. Nase at 215.918.3615 or at [email protected].