Help!!,
I just signed a option contract to buy the remainig land (1.6 acres or so) on an existing condominum complex that will allow me to built eventually arround 50 1-2 bedroom units (4 buildings). The complex was half-built 15 years or so ago and the current owner bought the remaining land and never built.
I am new to commercial property (have only couple of single-family home rentals) so I am not sure what I am getting into in terms of financing/cost and specially in terms of dealing with the existing home owner association. I am trying to decide if exercise teh option to buy or just back off (I have 45 days to do it) .
This is the situation: the HOA association so far is claiming that the land is now theirs in vitue of eminent domain because the owner never took care of the land in 10+ years … the owner claims that he never asked him to do it and he said that his lawyer will take care of it. The question that I have is what type of “legal” documents do I need to get from the HOA or from the owner prior to closing in terms of :
- will I be protected if I get Title insurace in terms of retaining ownership?
- do I need to get approval from the HOA to build before I buy the property?
- Do I need to pay HOA maintenance on the land? - who typically maintain that lot before is built?
Anything else to inspect in terms of the cables and water connection I have in the lots?
I’ll appreciate any help on this. Also how do I calculate roughly the cost of building in a multifamily home? How much per square footage? The land seem to be ready to build.
Thanks!!