L.P. from outside of Connecticut writes:
Dear Mister Condo,
When many of the first purchasers bought from the condo developer they were told that one condo unit on the first floor would be the owners’ clubhouse/fitness center. At some point (I’m unsure of when since I’m a new owner) the documents given to purchasers said that the clubhouse condo was owned by the developer and could, at some future time be sold. Now the building is nearly sold out and being turned over to the owners. The board is asking the current condo owners as to our interest in purchasing the “clubhouse” condo to ensure that the building continues to have this amenity. All of this is very early; we have an attorney who would negotiate the best price for us. However, I’m wondering what questions the owners should ask the board before they go further. Obviously, the price, how we would be assessed and for how long are questions but are there other considerations?
Mister Condo replies:
L.P., while it is unfortunate that the clubhouse/fitness center was not included as part and parcel of the development, I cannot say this is an uncommon practice. It sounds like the developer used a “bait” tactic of enticing early owners into thinking that there would be an amenity of a clubhouse/fitness center as part of their purchase but I am guessing no one has anything like that in writing. Again, this is not uncommon from stories I have been told from around the country. The unit owners will likely have to vote to add this common amenity to the association. Since it is almost certain that the unit owners will want this amenity, it is wise to work with the attorney to handle the negotiation. Aside from the purchase itself, you might want to ask about staffing requirements (if any) and insurance repercussions to the association from adding the amenity. There is also the issue of purchase and maintenance of fitness equipment, hours of operation, open to the public or just unit owners (or guests). Will it be rented out and to whom? The Reserve Study should be updated to reflect the new building and all costs should be considered. Like I said, it is likely to go through any way but I think it would be helpful for unit owners to know exactly what they are buying and what the real costs of owning it are going to be. Enjoy your new clubhouse!