The Challenge
Before the condominium units could be marketed and sold separately, the developer was legally required to establish the condominium structure and provide prospective purchasers with a public offering statement and governing condominium documents.
The project also required creation of the condominium association, recording the condominium declaration, securing separate tax parcel numbers for each unit, and obtaining individual real estate tax abatements tied to the condominium units.
The transaction involved coordination between the Recorder of Deeds, the Pennsylvania Department of State, and the Philadelphia Office of Property Assessment.
The Solution
Nochumson P.C. prepared the public offering statement and governing condominium documents, including the condominium declaration, association bylaws, rules and regulations, and proposed association budget.
The firm additionally formed the condominium association with the Pennsylvania Department of State and recorded the condominium declaration, legally establishing the condominium ownership structure.
After recording, Nochumson P.C. coordinated with the Philadelphia Office of Property Assessment to obtain separate tax identification numbers for each condominium unit.
The firm also ensured the developer properly applied for and secured the required real estate tax abatements for the newly created units before closing transactions occurred.
Condominium conversions in Pennsylvania require recording of condominium declarations and preparation of detailed governing documents before individual units may be separately conveyed.
The Results
The condominium conversion process was successfully completed and all condominium units were ultimately sold.
The developer was also able to secure the necessary tax abatements and legal protections associated with the condominium ownership structure.
