Condo Conversion

The real estate profession has become increasingly based in legalities. While a handshake can signify an agreement, the contract is the foundation of the real estate transaction today.

With the increased focus on legal issues, NVAR provides members services in the legal arena. Various articles on current and hot legal topics are provided through the weekly NVAR Online News. In addition, the Legal Information Line is available to members.

There are many real estate related questions that arise often. These FAQs (Frequently Asked Questions) by topic are provided to assist you in finding quick answers.

Condo Conversion

Q:    My client owns an apartment building.  He wants to convert it to condominiums and have me list the condominiums for sale.  Can he do that?
A:    Yes.  Converting apartments into condominiums is addressed in Chapter 116 of the Nevada Revised Statutes (NRS).  NRS 116.029 defines a “converted building” as a building that at any time before the creation of the common interest community was occupied wholly or partially by persons other than purchasers and persons who occupy with the consent of purchasers. NRS 116.2101 through 116.2122 enumerates the requirements of creating a common interest community.  Have your client read through these. In addition NRS 116.4112 requires giving the apartment tenants notice of the conversions and an opportunity to purchase units. There may be legal and tax implications involved.  It is highly advisable to have your client seek legal and accounting advice in making this conversion.  Remember, real estate licensees cannot give legal advice.