Purchasing Neighboring Condo Unit in Foreclosure

L.J. from New Haven County writes:

Dear Mister Condo,

I live in a 3-unit Condo Association. One unit is in foreclosure. I own one. Can I purchase the other that is in foreclosure?

Mister Condo replies:

L.J., unless the condo’s governing documents prohibit the purchase of more than one unit, I don’t see why not. However, I would have to ask you why you would want to? If your plan is to knock down a wall and make one large unit out of the two, that is very likely not allowed. If you are going to be a landlord and rent out one of the units, I see no problem. Or perhaps you are thinking of purchasing the distressed unit to turn around and sell it? Again, I see no problem. Just understand that you will be fully liable for the common fees and any other assessments that the association gets hit with and that you will have not one, but two, obligations to pay. As long as you go in with your eyes wide open, I see no issue. Good luck!

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