Anybody set up of live in a lakeside condo association

[sublauxation]

My wife and I, along with her brother and dad are considering buying a resort and making it into a family type condo association. Obviously it would be nice to have separate lots and all but it really isn't an affordable option.

Anybody have any experience with this, or live in one that can give some in's and out's? Obviously the family squabble thing comes up but they're a pretty easy going family and we all get along. Per written agreement pending unforseen divorce we've all agreed that the cabin stays with the blood line to keep it in the family.

I've talked with a lawyer, the county, and a surveyor so it seems like there are multiple ways to set these up. If anybody has anything to add I'd appreciate it.

 

[roscoe]

Re: Anybody set up of live in a lakeside condo association

Family typ condo association ???


What the heck is that?


When dealing with real property, there are countless scenarios that can destroy the deal. And through in family, financial, and natural disasters and you have the making of a mess.

First off, what are you buying?

One shared cabin?
A bunch of cabins?

Will they be sold to others?

Will they be rented out?


Make sure there is a way to buy others out, and the cash to do it.
There are many reasons why someone may need to get out.


In any case, you are better off setting this up as a business.
Lots of liability ins,
lots of life ins on each member/owner, that pays off to the business so it has the cash to buy out heirs that want their inheritance.

Then you get to the rules of use.
And the division of labor.
And the squabble settlement procedures.


Really not worth the hassle.

 

[ShadowB]

Re: Anybody set up of live in a lakeside condo association

Having just went through a re-incarnation of an association I agree with Roscoe. Be clear about what your goals are because you may not be talking about an association nor may you need one. But his point about setting the arrangement as a business is excellent advice, especially when it comes to liabilities and who will share them. Common areas aren't common, nor are the care of roads, parking areas etc. People are funny when it comes to paying for upkeep of shared areas or complying with covenants that are set up voluntarily or to comply with city/county zoning restrictions. Future generations are even funnier about it. Also remember today's city/county zoning requirements aren't necessarily tomorrows. All the points he mentioned are no kidding potential future problem areas if the burdens aren't clearly spelled out and documents legally registered with city/county and states. Talk with a good attorney that deals with associations then talk with your city/county and state on setting up/registering your legal association if that's clearly what your intent is. Keep in mind associations often aren't needed and you may really need some other legal family instrument.

 

[Fishing Dude too]

Re: Anybody set up of live in a lakeside condo association

Haveworked withing a park as. setting up some of these things. Put a value on all things at time of incorp. make it a not for profit, spell out who can own, and exaclly what they own, letting te land remain in trust taking 3/4 majority to disolve. I will leave it there pm me if more questions.

 

[sublauxation]

Re: Anybody set up of live in a lakeside condo association

Thanks for the advice thus far. The space we're looking at has 5 cabins and 2 out buildings. It also has a whole lot of empty land and thus the opportunity for us to get a place cheap. I can see where there are a lot of issues to work out, especially with the extra land and where the money goes if it's sold.

Any advice on other set-ups besides associations? I appreciate any and all knowledge as at least I'll know what to ask the lawyer about.

 

[roscoe]

Re: Anybody set up of live in a lakeside condo association

You can set it up as a partnership.
make sure you have clearly defined "private areas" ( such as individual cabins) that each is responsible for.
You need ways to automatically buy out members if they want out, or if the blood relative dies. You don't want the asset to pass to the spouse or heir.

Then, if you all choose, you could let the heir buy-in.

This usually means that the partnership buys life insurance on each member owner.
If you die, the insurance pays the partnership, and they use it to buy out your wife.

It can get real messy otherwise.

Example scenario:
Say your uncle Joe is a partner, he dies, his wife (aunt Sue) gets his share, she remarries to a guy (Jim) with 3 kids.
Now say Jim dies, his 3 kids want his share that he acquired by marrying Sue.
Inside of 3 years you could lose an uncle, a step uncle who you didn't get along with, and you gained 3 step cousins and their spouses and kids, all as part owners.


Now, please don't ask me how I know this, but I will tell you my original share was inherited.. 1990-1994. Luckily I was able to sell out before all the really messy stuff started.


Everyone should expect to pony up several thousand a year for taxes, upkeep, insurance, life insurance, etc.


Then you need to make a plan, how to decide if a repair or improvement is really needed, and who pays for it.

If people don't pay their share, their % of ownership diminishes by said amount.


Honestly, it would be a lot easier for one of you to buy and own the property, then rent/lend the cabins to the other family members.

Its easier to make decisions.
Easier to pay bills.
Easier to get rid of troublemakers or future relatives.

A simple rental agreement and lots of insurance takes care of everything. Charge what you want to cover ALL the expenses.

 

[Fishing Dude too]

Re: Anybody set up of live in a lakeside condo association

That is why you set up as a not for profit, set with values, and who can own, this stops many of these problems. There is many issues, would be expensive to do but hire a shizter (lawyer) who is in the know on this. You will also need to have member meetings set to hard dates (ie 2nd sat in june, sunday following fathers day). The cost will be assessed as dues from members, the who can own will be set in the bylaws voted on by the members.

 

[aspeck]

Re: Anybody set up of live in a lakeside condo association

Don't know how many people are involved, but you might be better off pooling your money to buy the whole property and then subdividing it to individual owners. Then everyone is responsible for their own cabin and land and can do with it as they please.

 

[sublauxation]

Re: Anybody set up of live in a lakeside condo association

Don't know how many people are involved, but you might be better off pooling your money to buy the whole property and then subdividing it to individual owners. Then everyone is responsible for their own cabin and land and can do with it as they please.

That's an option but these things apparently are never easy. I've talked with a lot of township and county people today. Dividing it means all lots have to conform to current setbacks and lot widths (currently 200 ft minimum) which means one cabin has to go....pending a variance over a lousy 25 feet of frontage that we'd be short. As part of their way of forcing all lots into compliance over time they wont let you add on to or rebuild the structure of the remaining cabins pending a variance. I can see where it gets complex really quick.

 

[cgd7777777]

Re: Anybody set up of live in a lakeside condo association

save your money and rent a place a couple times a year
nothing worse than dealing with money friends and family