Can My Board Prevent Me From Selling My Co-op Unit In New York City?
The short answer to that question is yes. Co-op boards have a lot of power and a lot of discretion when it comes to approving a particular sale and they can even arbitrarily deny a transaction so long as the decision is not discriminatory. The board can prevent you from selling to a certain purchaser and prevent you from selling at a certain purchase price and they do not need to provide a reason for the disapproval. In order to maximize the chances that the board approves your sale, it is recommended that you find a purchaser who is financially qualified. If you work with the board and cooperate with them, you should not have a problem selling the unit. However, each co-op corporation and board is unique and it is important to keep in mind that the board does have a lot of power and discretion when it comes to their decision-making.
I always advise clients to cooperate and work with the board rather than to fight their decisions, complain, or try to take legal action against the board. This includes cooperating with the board and following all rules during the period that you own the co-op unit. You do not want to make enemies with your co-op board because of the power that they have. New York courts have long taken the position that cooperatives can reject any proposed purchaser as long as they do not discriminate based on the purchaser’s race, color, religion, national origin, or ancestry.
For more information on Selling A Co-op Unit In New York City, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (800) 619-3570 today.
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