Frequently Asked Questions

A condo deconversion is the name for the process of taking a condo building and changing ownership to a single entity. This is typically done to turn the condos into rental properties. The Illinois Condominium Property Act allows this through Section 15 bulk sales.

• Step 1

  • Initial Assessment: Consultation with a professional to determine if deconversion is feasible

• Step 2

  • Board Approval: The board will review the valuation and vote whether or not to move forward

• Step 3

  • Owner Education: The condo board will hold meetings to educate owners on the value a deconversion could provide them

• Step 4

  • Appraisal: Following the initial assessment, a deeper valuation will be conducted to determine the market value of each unit

• Step 5

  • Buyer Negotiations: The property would be marketed to potential buyers to get the best price for the property

• Step 6

  • Owner Vote: Once an agreement is reached, owners conduct a vote to proceed or not. In Chicago proper, 85% of owners must agree and outside of city limits only 75% must agree

• Step 7

  • Closing: Provided that a vote threshold is met, all owners would close simultaneously

Similarly to a typical home or property sale, condo deconversions can take anywhere from 3-6 months with some potentially extending beyond that timeline. As advisors, we are here to assist in streamlining that process to make it as quick and easy as possible.

Yes, the Illinois Condominium Property Act allows for the forced sale of all units if a certain percentage of ownership interest is willing to sell. In Chicago, the threshold is 85% of owners. In the Chicagoland Suburbs and everywhere else in Illinois, only 75% of owners must vote yes. In this case, owners who vote no or abstain from voting will be forced to sell.

Often, the buyer of a condo deconversion will offer an option to existing owners to lease their units back following the sale. This is a case-by-case basis, and new buyers may want to execute their business plan immediately. This is best answered in discussions with the board and new buyer prior to voting.

Individual owners can initiate the deconversion process, however the condo board typically handles it. Owners can petition to the board to have an analysis done to determine feasibility. An owner could also reach out to us to discuss the situation and the potential of a deconversion sale.

Because the property is being sold as one building, the fees are typically a lot lower than the fees associated with a single home or condo sale. The fees would end up being significantly lower due to the economies of sale with a larger property. The majority of fees are paid at the time of closing using the proceeds of the sale and can include tax prorations, closing costs, and broker commissions.