Commercial Condo Purchaser Tips

With the continued exponential growth in mixed use developments which often take the form of separate components subject to condo declarations and in many cases multiple condo declarations as between the residential and commercial components, buyers and mortgage lenders will consider additional factors during their due diligence and as part of future management of the various components.

In a mixed use developments not governed by a condo declaration, the additional management issues will typically be dealt with in relatively straightforward easement and cost sharing agreements.

Considering a condo declaration in a transaction adds another layer of complexity as these are quasi title documents that are often subject to statutory regimes designed primarily for residential properties and awkward at times for regulating relationships between a residential component (which itself might be subject to an additional internal condo declaration) and a commercial component.