Expert: Dick Dennis - 4/19/2009

Question
Hi Dick,
The condo I'm considering to buy, shows a 6.94% share in the common areas because it comes from Phase I. Later on they were build two more Phases, so the actual percentage went down to 3.19% My problem is that the title has not been updated and it still shows the original 6.94% Do you think it should be ignored, or corrected, and how?

Answer
It would seem, Mike, since they apparently have not built the additional phases, that the 6.94% is till valid. So, if you do buy that condo, you cannot say you did not know you didn't know about the change in percentage. If nothing else, it means you would be responsible for assessments and responsibilities for that much of the entire development. You would also have that much to say about any changes or improvements in the entire development. My guess, at this time, is that the developer owns and is responsible for a large portion of the development. It is up to you whether you want to buy the condo and be responsible for whatever percentage it offers. When and if they do add the other phases, just make sure that they are not making it so you owe more than you representative share at the time. I do wish you well.

Dick Dennis