Introduction to the Crisis
Owners in one South Florida condo community say they are uncertain whether they can stay in their homes after developers have bought up the majority of the property.
The Human Impact
“This is my house. This is my everything,” Oscar Larrieu told NBC6 Investigates. “This is everything I’ve worked for.” The one-bedroom condo in Miami’s Coconut Grove neighborhood has been home for Larrieu for 25 years. “This is my little escape from the troubles of the world when I, you know, leave and come home and relax,” he said. But Larrieu says he hasn’t been able to relax in recent months—because he’s not sure how much longer he’ll be able to keep his home.
The Developer’s Intentions
Bayshore Park condo sits a block from the water on South Bayshore Drive. It was built in the 1960s and is walking distance from some of the Grove’s most popular attractions. Miami-Dade County records show developers Mast Capital and BH Group, through an LLC, now own 30 of the building’s 39 units as well as a vacant lot directly behind the condo. The joint venture and speculation surrounding what the developers have planned for the property have made headlines in the real estate world.
The Legal Situation
“The emails happened where they were saying that they can terminate, they had the right to terminate the building,” Larrieu explained. “You know, they sent this to our association lawyer, but they copied all the owners.” Larrieu says owners were copied on an email in June from an attorney representing the developers, who are now majority owners. It asks the association’s attorney at that time to “…Acknowledge some of the hard facts…” specifically the condo’s termination provision. Adding, “…our client has an ownership interest in over 75% of the units…all current members of the board have consistently sought to block termination.”
The Offer and the Uncertainty
In late July, Larrieu says the developers reached out to him with an offer, but he had not yet responded. “It’s very unsettling just because of the nature of the unknown,” he said. “It’s just everybody’s, I think, in a state of panic and fear.” Current Florida law requires a vote of at least 80% in order to terminate a condominium, but that doesn’t necessarily apply to all condos.
Understanding the Law
“It depends on a lot of factors,” according to attorney Carolina Sheir, who is not affiliated with Bayshore Park. Sheir is a partner at Eisinger Law firm and is certified in condominium law. She explained how owners can know their rights. “To make it easy as possible, it’s basically what law applies to your condominium,” she explained, “And that depends on what language is stated in your declaration.” It’s known as Kaufman language, a simple phrase “as amended from time to time,” which means your condo will always follow the most current law.
The Specifics of Bayshore Park
In the case of Bayshore Park, Sheir says the declaration, which is the condo’s governing document, doesn’t have that language. Instead, it has other provisions. “And that basically says that 75% of the owners can come together into an agreement to effectuate a termination process,” she explained. We reached out to representatives for BH group and Mast capital and got an email in response confirming their joint venture acquired 30 units, which is over the required 75% threshold. A spokesperson told NBC6 Investigates: “The joint venture ownership has submitted offers to the remaining nine unit owners in the building.”
The Growing Issue of Condo Buyouts
Sheir says condo buyouts are a growing issue. She says she meets with one or two condo associations a week weighing whether they can terminate. “When you are purchasing the biggest investment of your life, which is your home or should be your home, you really need to understand what you’re buying,” she said. Larrieu says he thought his investment was a forever home. “I’m being sacrificed for somebody else’s profit,” he said.
Conclusion
The situation at Bayshore Park condo highlights the complexities and uncertainties faced by condo owners when developers acquire a majority of the units. The fear of being pushed out of their homes is real, and the legal nuances can be overwhelming. As the real estate market continues to evolve, it’s essential for condo owners to understand their rights and the laws that govern their properties. For Larrieu and others like him, the future remains uncertain, leaving them to wonder if they will be able to afford a similar home in the current housing market.
FAQs
- Q: What is happening at the Bayshore Park condo?
A: Developers have bought the majority of the units, leaving existing owners uncertain about their future in the building. - Q: What does the law say about terminating a condominium?
A: Current Florida law requires a vote of at least 80% to terminate a condominium, but this may not apply to all condos, depending on their governing documents. - Q: What is Kaufman language, and how does it affect condos?
A: Kaufman language refers to a phrase in a condo’s declaration that states the condo will follow the most current law. If a condo’s declaration includes this language, it will be subject to current termination laws. - Q: What should condo buyers consider when purchasing a unit?
A: Condo buyers should understand what they are buying, including the laws and provisions that govern the condo, to avoid unexpected situations like the one at Bayshore Park.
