LEGAL HOTLINE ARCHIVE
Condominiums

Q. A client is developing a 12 unit residential condominium. This is a conversion of a three story warehouse. I have been informed that this section applies to this conversion. As I read Louisiana Condominium Act §1124.104, I feel that it is referring to the conversion of a residential rental property like an apartment complex or smaller multi-family structure.

The statement "occupied wholly or partially by persons other than purchasers" to me means renters, not factory workers or retail tenants.

This section does apply to a conversion of a warehouse into a residential condominium.

A. La. R.S. 9:1124.104 supplements La. R.S. 9:1124.102 which provides that prior to the initial sale or execution of a contract to purchase a condominium unit, the declarant shall provide a purchaser of the unit with a copy of the public offering statement containing and accurately disclosing those items listed in Section 1124.102. Section 1124.104 states that if the public offering statement of a condominium containing any building that at any time before recording the declaration was occupied wholly or partially by persons other than the purchasers and having greater than ten (10) units, the public offering statement must contain, in addition to the information required in Section 1124.102 those items listed in Section 1124.104, including a report prepared by a registered architect or engineer describing the present condition of all structural components, roof, and mechanical and electrical installations material to the use and enjoyment of the condominium.

There is no caselaw following this statute, neither is there any commentary that specifically defines the word occupied as used in Section 1124.104. In a general reading of the condominium act, it would appear that 1124.104 would apply to any building being converted to condominiums that is not new construction. This would include occupation of the building by residential tenants, retail tenants and/or manufacturing workers. There is no definition of the word occupied contained in the statute, but our general reading of the statute would reflect that "occupied" would include all but new construction.

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