Legal Question in Real Estate Law in New York

Coop won't approve sale due to price being too low?

After years of taking our previous sponsor to court (and winning), our co-op had to file bankruptcy. We found a new investor who came in and put alot of money into the co-op (new garage, elevators, etc). Part of the deal was that they get the old sponsors apartments (around 50). I haven't lived there in 2 years. Its been sitting empty after we moved because we couldn't sell. No bank would give a mortgage. Now that they are out of bankruptcy, I tried to sell. First they said the sponser has to sell a certain % of their apartments first, then the owners. Now after that has happened and I've found a buyer, they won't approve because they say my price is too low. I dont think it is, either does the buyer or the real estate broker. They are selling their comparitable apartment for $70,000 more than mine. The maintenance in the bldg is so high, no one would pay that price. Can they not approve a financially able buyer because they don't want ''lower comps'' taking their price down? How will I ever sell if the price they want me to sell at is never going to happen! Are they trying to get me to forclose or sell to them? Help! I can't keep laying out this kind of money month after month!

Thank you


Asked on 10/16/05, 10:30 pm

1 Answer from Attorneys
Peter Moulinos Moulinos & Associates LLC

Re: Coop won't approve sale due to price being too low?

Sounds like a bad situation where your goal clearly is to get out.

I have seen many coops in NYC reject an application becuase the coops believes the price is too low. Most of the time the coop will not go on the record and give that as a reason. There could be an issue as to whether such a turn down constitutes bad faith and not in the best interests of the shareholders.

I would be interested in speaking to you about this further as I would need additional details and information in order to best assess how you should proceed. Feel free to contact me to discuss the matter. I look forward to hearing from you.

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Answered on 10/17/05, 9:41 am


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