Recently there has been a large increase in the creation of dry dock boat condominiums (sometimes referred to as a rackominium), as more and more consumers desire to purchase a place to store their boat as opposed to leasing. Ultimately, dry dock boat condominiums are purchased and sold similar to a residential condominium unit, in that the condominium unit is effectively a pocket of air or space within a larger building. As a result, prior to entering into a contract to purchase a dry dock boat condominium unit, consumers should be mindful that the condominium unit will be subject to certain restrictions and association rules. The restrictions and rules will dictate the size limitations, the transfer restrictions, and any other limitations placed upon the condominium unit. Often times, the association within a dry dock boat condominium will have either a right of first refusal to purchase the condominium unit upon an attempted sale or absolute approval right over each transfer of the condominium unit. Certainly, the benefits of purchasing and owning a dry dock boat condominium can far outweigh being subject to a short-term lease with little predictability in costs. Nonetheless, it’s important to have a real estate attorney assist in the review of the condominium restrictions and association rules applicable to the condominium unit to ensure the consumer is fully aware of the rights and obligations associated with ownership of the condominium unit.
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