Me and my wife and I are the only owners in a newly rehabbed condo development. The developer has disappeared and many of the units are incomplete and unsecure. How do we form a condo association and secure the units and take over the common areas that are being negelected ?

You have to get all the owners to agree to form an HOA. Then set up by-laws and elect officers.

I would strongly suggest that you retain a lawyer familiar with these situations to set everything up properly.

I agree with Scott that it's time for some legal counsel. If the owner of all of the other units is not able to be located you'll need an attorney to navigate the necessary steps. Wil the other units wind up being foreclosed on - do you know?

The challenge that we actually face is that we are the only owners. The 2 other completed units are empty. There are 2 incomplete units in the building. The building next door is vacant, gutted, and boarded up. The vacant units in our building are unsecure. Which allow for vagrant access; I've just been diligent with my security measures. We are technically, under "DEVELOPER"/Home Owner Association, until 3 years have gone by since we have purchased, 75% of the units are sold, or he (the developer) turn over the association responsibilities. The challenge is that the developer is MIA, how do legally form our own Association and secure the buildings against trespassers ?

Do you have covenants for the Developer/HOA? You should have been given a copy of them at your closing.

Also, I'd access county records to see who, exactly, is listed as the owner(s). There should be some warranty deeds or something on file. I'd try to get ahold of the lender that the builder borrowed money from. I would think they'd have a huge interest in this issue. I'd actually be surprised if it's already on the road to foreclosure.

I still definitely think it's time to involve an attorney. This is a unique situation. You need a good real estate attorney.

Did you say where you're located?

Even more important to get an attorney. Since there is an existing covenant, you have to work under it. Even if the developer is MIA. And you need to do this fast.

As Rockin pointed out, the property is probably mortgaged to the hilt and the lender is probably going to dictate what happens next.

What state are you in?

Before you retain an attorney you should contact the agency in your state that registers condominiums. Tell them everything that's happening. If your state is anything like NJ then the agency will go after the developer and most of the work will be done for you.

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Originally Posted by LisaB4657

What state are you in?

Before you retain an attorney you should contact the agency in your state that registers condominiums. Tell them everything that's happening. If your state is anything like NJ then the agency will go after the developer and most of the work will be done for you.

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Exactly - and for free!

We are in Chicago,Illinois

I would start by calling the Chicago Consumer Hotline for the Attorney General's office. 800-386-5438

Tell them your situation and they should be able to direct you.