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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 28035
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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I own a condo in St. Paul, Mn. I purchased a condo out of foreclosure.

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I own a condo in St. Paul, Mn. I purchased a condo out of foreclosure. It is one of two units in a converted duplex. The was not an Association when I purchased and the owner of the other unit does not want one.

We live in ours and he rents his out. The common area is deteriorating and needs some capital investment to repair. The other owner is unwilling to make any capital investment.

Therefore, the value of my property is declining.

I would like to sell, but (a) banks will not do a mortgage on condos without an Assoc, and (b) I cannot get market value (or even close) due to the common area condition.

What can I do?
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good afternoon. I certainly understand the situation and your concern. Is the condo paid in full or do you have a mortgage on it?
Customer: replied 3 years ago.
Paid in full
No mortgage
Customer: replied 3 years ago.
Paid infull
Thank you for the additional information. Since the typical buyer will need to obtain a mortgage to buy the condo and there are going to be problems obtaining one, since there is no association, your only option is to find a cash buyer, at this time, if you want to sell. Moreover, you are likely going to have to take a loss on the property since the market value is less then what was paid, if you want to get out quickly. You should speak with your accountant, to see how selling this for a loss could have any possible tax benefits to you. The other options is to take the same approach as the other owner and rent this property out. This way, it will provide you with income which you can use and apply to another residence ( since you have no mortgage) and can allow the market conditions to possible increase, so you may not have to sell it at a loss. It is a tough situation since you have another own who is unwilling to cooperate and banks that will not loan, without an association, for this very reason. As such, you either find a cash buyer and take a loss or rent it out and wait for the value to increase.

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Customer: replied 3 years ago.
Do I have any recourse on making improvements to the property. The siding is dirty and falling off, the concrete stairs are crumbling, The common area electrical needs updating, the common entry way has broken windows etc.
If you did make the improvements, you could have a possible basis to go after him and sue, since they are for the common area, in which you both share an ownership interest. Since you are both owners, the common area can not be neglected. Moreover, issues such as liability if someone were to be hurt/injured should be addressed and you should speak with this person and see why they do not want to upkeep the area. If I had to guess, I would say it is because they do not live there, so they likely do not care. However, that does not give them the ability to just neglect the property and pass the cost on to you, since they do share an ownership interest.
Customer: replied 3 years ago.
So my option is to fix up the property, sue him for his portion (he has already said he will not pay for the improvements. You are correct. He does not care since he does not live there). Get a judgement and try to collect on the judgement?

There is no law requiring him to pay upfront for his portion or to maintain a safe property?
Pay up front? No. Keep a safe property? Yes, you would think he would want to since he could get sued if someone was injured in the common area. That is what seems odd. He is exposing himself to liability and is not covered. It would be one thing if you wanted to landscape or pressure clean the building but it is another thing if the neglect could lead to someone being injured or harmed. If the things which you need to fix up are a necessity, they you would have to try and sue him and get a judgment, since he is failing to contribute on his own.
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