Legal Question in Real Estate Law in New York
Coop Assessment can't be transferred to new shareholders?
I live in a small co-op in Manhattan. We recently rejected a flip tax and so in order to pay for refurbishment of the common areas, an assessment has been levied. The question I have is that the notice we received says that the assessment cannot be transferred to new shareholders. So if i sell my unit (and shares) during the assessment period, I would need to pay the full amount of the assessment up front. This doesn't make sense to me because when i first bought a few years ago in this building, there was an assessment that was transferred to me. Is this requirement that i pay all assessment monies owed before my sale legal?
2 Answers from Attorneys
Re: Coop Assessment can't be transferred to new shareholders?
As long as the resoluition regarding the assesment was duly passed and it stated in the resolution that no transfer of the obligation can occur it is legal. I would suggest reviewing the resolution with an attorney. This means the Coop wants the assesment paid in full at sale. You could try to make it the buyer's obligation to pay the balance of the assessment at closing.
Re: Coop Assessment can't be transferred to new shareholders?
Your situation is interesting however you should be aware that the terms of the first assessment and the resolution previously passed by the board may have been different than that of the second assessment. You should however also check the offering plan and by laws to see what rules govern assessments in your building. That may provide restrictions on the board.
I can discuss with you further if you'd like so please feel free to contact me.
Kind regards,
Peter Moulinos
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