Legal Question in Real Estate Law in New York

Re: Selling a co-op

This is a recurrent problem in some buildings. IF the board is being arbitrary and capricious, then you can successfully sue them for interfering with the sales. Generally, the coop's sole legitimate exception would be to the financial condition of the purchaser. In some cases, however, the coop board turns the process over to its managing agent, which has an incentive to extract fees from you for overseeing the decorating work. I have eve seen cases in which the managing agent has tried to collect application fees from multiple purchasers whom it then rejects, keeping the fees, and keeping the pot boiling. There is no way to tell in the abstract.

The next step is, I am afraid, to engage counsel to put some fear into the board. The proprietary lease probably says that the coop gets its attorney's fees if it sues the tenant. The law allows this, but it also converts that clause into a reciprocal one: the winner recovers its attorney's fees, irrespective whether that be the tenant or the coop. So, there is some prospect for an award of attorney's fees. Counsel would need to review the proprietary lease and by-laws and then, with your parents' permission, contact the managing agent and ascertain whether it seems your parents are being treated unfairly. If so, then one proceeds rather immediately to filing a lawsuit, since it is follows that they will not suddenly start being nice by reason of someone asking, no matter how politely.

This post is not legal advice and does not create an attorney-client relationship. It is a comment on the legal question posed by the poster and should not be relied upon unless and until an attorney-client relationship is entered into. Doing so would require signing an engagement letter and depositing a retainer to secure payment of legal fees.

Re: Selling a co-op

I SUGGEST GETTING A DURABLE PWOER OF ATTORNEY FROM YOUR PARENTS TO START WITH. PROPERLY DRAWN, THIS WILL GIVE YOU ALL AUTHORITY TO REPRESENT YOUR PARENTS HERE IN THE US. IF YOU NEED HELP WITH THE POWER, CONTACT ME DIRECTLY. AFTER YOU GET THE POA, YOU WILL HAVE ALL RIGHTS THAT YOUR PARENTS POSSESS. THIS WILL ENABLE YOU TO CONTACT ALL RELEVANT PEOPLE, INCLUDING THE CO-OP BOARD. YOU NEED TO SEE THEIR BY-LAWS AND ANY DEED RESTRICTIONS, WHICH USUALLY SPELL OUT THE LIMITATIONS ON SELLING. IN MANY NY CO-OPS, THE BOARD HAS GREAT POWER OVER DECISIONS ON WHO CAN BUY AND MOVE IN. SOMETIMES THESE CAN BE ARBITRARY AND RESTRICTIVE. YOU NEED TO KNOW WHAT YOU ARE UP AGAINST BEFORE YOU START. SOME CO-OPS ALSO LIMIT PURCHASERS TO THE CO-OP ITSELF, OCCASIONALLY AT A FIXED PRICE OR AT LEAST TO THE SAME TERMS AS A BONA FIDE OFFER. I WOULD NEED TO SEE THE PERTINENT DOCUMENTS TO GIVE YOU BETTER INFORMATION.

Re: Selling a co-op

Your parents should immediatly retain an experienced NY attorney and possibly broker for all matters having to do with the sale of the coop.

If you are attempting to bypass the professionals, and do it yourself, you will probably find the lessons eventually learned unnecessary and more costly than the value of the property.

Good luck,

Phroska L. McAlister,ESQ