What must the majority of owners do to change a condominium status to an income-producing property?

To change a condominium's status to an income-producing property, the majority of owners must create a termination agreement. This process involves a formal decision by the condominium association, typically requiring a specified percentage of unit owners to agree to terminate the existing condominium regime.

This termination agreement outlines the intentions of the owners regarding the change in property use, which is necessary because it affects the legal and financial framework governing the property. In many instances, the conversion of a common interest development like a condominium into an income-generating property involves complexities related to zoning laws, financial obligations, and tenant rights, all of which are addressed within the agreement.

The process usually requires more than just informal discussions or consultations; it needs a solid commitment from a significant portion of the owners to ensure that the transition is legitimate and complies with local real estate regulations. This formal move protects the interests of all parties involved and ensures that any required legal or financial implications are properly managed.