Transforming the use or ownership of property, generally income-producing real estate, e.g., converting apartments into condominiums. Conversion may involve remodeling or partitioning and relocating tenants who do not choose to buy their units. For example: when a property (multi-family, office, or industrial) is purchased for the purpose of converting it to a “for sale” property in order to sell individual units. Say a 40-unit apartment building, currently rented as apartments, is purchased for conversion to sell the individual units. The legal description may or may not reflect a condominium plan. If not, then the legal description will have to be changed. Once the individual units reflect separated legal descriptions and comply with the subdivision map act of that state, the current tenants are relocated during reconstruction/remodeling. After reconstruction, the units are listed for sale, and existing tenants at the time of the conversion are usually offered the first chance to purchase the units.
