Hundreds of Florida condo owners are discovering that they won't receive as much help as they hoped. A new law was designed to increase owner's rights as condos are being converted to apartments. But when their properties go rental not all owners are compensated at the full price they paid. Many are being forced to sell at huge losses.
Governor Rick Scott signed the law in July. However, just prior to the House voting on this measure, it was changed to provide full compensation only for owners with Homestead exemptions. This came as a blow to those who bought second homes or investment properties.
Bay Isle Key, a 370 unit complex in north St.Petersburg, is one of hundreds of Florida condo developments converting to apartments. (www.bayislekeyapartments.com)
When investors acquired 80 percent of a buildings units, they could terminate the condo association, convert the complex to rentals and force individual owners out. The new law says owners will be paid the current fair market value, not what they paid. In several cases, today's market value is far less than what a condo originally cost at the peak of the boom.
For knowledgeable real estate advice, call Kohan & Associates at 727-204-5001 or visit www.Suncoasthome.com.
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