Now that the recession is beginning to become a memory of the past, the demand for housing is on the rise, and with it is the explosive interest in the multifamily market. As more…
Source: www.jdsupra.com
With the increasing interest in condo conversions, the market is also seeing the growth of a certain breed of restrictive terms in modern purchase and sale agreements which strictly forbid any buyer from converting to condos. The primary reason is that these binding restrictions on the use of property, or “restrictive covenants,” can act as a shield against exposure to costly construction defect claims. Often times, once the statute of limitation expires for construction defect claims, the condo conversion restrictions will expire as well.