Maui Real Estate Sales and Property Management | K. David Josephson President and Principal Broker
K. David Josephson, President & Principal Broker of Hawaii Property Management & Sales, Inc.
has a proven track record.
Summary of Basic Steps to Convert
No up front fees ever! You pay for results only.
| 1. Meeting to assess the Board of Directors and Homeowners’ desired goalsand any lease negotiation history thus far. Qualifications of the Agent are presented. 2. If in agreement, enter into an “Exclusive Right to Represent” agreement for a specified amount of time. 3. Agent will attempt to negotiate purchase terms from lessor. 4. If negotiations are successful, the terms will presented to the Board of Directors with options and recommendations. 5. If the decision is to move forward, the Association will enter into a formal purchase agreement for the land. The Agent will ensure that protective contingency clauses are in place. Then a letter will be sent to all the owners explaining the lease to fee conversion and ascertain how many owners are in favor. 6. If the required majority of owners are in favor, the Board of Directors will pass a resolution to purchase the lease. The owners will be sent a purchase agreement to execute with the assistance of the Agent. 7. Once the required percentage of owners purchase agreements are in escrow, the Agent will assist the Association and the individual owners to meet all requirements to close. Once met, there will be a simultaneous closing of the Association purchasing the fee followed by the owners purchasing the fee for their individual units. 8. Any owners that do not purchase the fee will then pay their lease fees to the Association. The Association will obtain financing to purchase the remaining fees. The terms of the lease cannot be changed. However, the sale price may be changed at any time. The owners that did not purchase will be required to pay a much higher price for the fee in the future. This will generate profits for the Association to offset maintenance fees. Done deal… |
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