Condo or Apartment???

[Mike Krausman]

I sold 15 condos recently in an apartment to condo conversion in Houston, Texas. The Owners that were doing the conversion went bankrupt and the bank took the property back. The bank has an apartment manager running the property and is no longer offering condos for sale, they are just leasing the vacant units and say they have no intentions to sell them again. What happens to the people that bought? They are basically living in an apartment complex versus the condominium community they thought they were buying into. By the way, it is a very poorly run management company with no care for the residents whatsoever.

Do they have any recourse? Please respond!

[grasmicc]

It depends on a lot of factors. They may have some recourse or may not. They should have their HOA consult an attorney to decide the best course of action.

[elklaw]

You need to consult an attorney as this is more than something that can be dealt with in a discussion board. It may be that these folks who bought condos can get some recourse in the bankruptcy court if they file claims, and it also may be that hte owners have insurance that may be able to cover some kind of refund of their purchase, but you need to consult an attorney to investigate this and will most likely need to file a claim with the bankruptcy court trustee. Also, it is very unclear if there is still ownership here and this may be a matter that may end up beign litigated with the current management company.