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The push for density in urban areas like Austin has created an explosion in the number of new condominiums, especially smaller units. But fewer numbers of units doesn’t necessarily mean fewer headaches when creating the condominium regime.

5 Things You Need to Know When Creating Condominiums:

  1. Creating a condominium can allow a developer to construct multiple units on a single lot without re-subdividing the lot into smaller lots.
  2. The typical condominium project will require a condominium declaration to create the condominiums as well as the documents required to form a non-profit entity, typically a corporation to serve as the property owners’ association. The services of a surveyor or engineer will also be required to prepare the drawings to be attached to the condominium declaration.
  3. Creating a condominium usually does not require approval of the city or county.
  4. Smaller condominiums (two to four units) have unique issues. Using condominium documents typically used in larger condominium projects do not usually address the issues raised by smaller condominium projects.
  5. A developer must make certain that deed or subdivision restrictions do not prohibit use of the property for multiple units. If the property is restricted for use as single family residences, it may not qualify for creation of more than one condominium unit per lot.

Contact Hancock McGill & Bleau for advice on properly creating a condominium regime that will be an attractive purchase to buyers.


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