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Hope Vanderb…, Both Buyer and Seller in New York

Is it legal for a coop board to decide to charge a $1,000 fee for a shareholder to rent out their apartment?

Asked by Hope Vanderberg, New York Thu Sep 20, 2012

I'm also wondering if those who have tenants (who outnumber the board) could simply reverse the rule by voting it down at a future shareholders meeting.

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Answers

5
Anna Brocco’s answer
For any necessary legal advice do consult with an attorney who specializes in real estate. Review your original related co-op documentation, the answer can most likely be found in the paperwork; generally yes boards can impose a fee; if enough shareholders share your concerns, consider grouping and express your concerns....
1 vote Thank Flag Link Thu Sep 20, 2012
The fee amount will differ but there typically is a charge, it will differ from board to board. It's laid out somewhere in your paperwork.
0 votes Thank Flag Link Fri Sep 21, 2012
I have never read an offering plan that did not have a fee (or an interview process) for a shareholder to rent out their apartment. Check your offering plan, it will explain the procedure.
If you feel the fee is too high then you should go to the Board meetings to see if the fee can be changed.
0 votes Thank Flag Link Fri Sep 21, 2012
Thank you for your reply! There is an interview process, but this fee is brand-new - it's not in the offering plan and was just voted in by the board. I guess the lesson is: go to board meetings! (unfortunately, we now live out of state, which is why we vacated apartment in the first place).
Flag Fri Sep 21, 2012
HI Hvanderberg,

Everything depends upon what your offering plan and proprietary lease say. In general, the board can institute fees at their discretion and the only way to change that is for the board to rescind the decision.

I hope this helps. Feel free to contact me if you have any more questions or as Anna suggested, please contact a real estate attorney for a more building specific response.

JOE GREENE
Broker/Owner
WEICHERT,REALTORS - House & Home
609 Kappock Street
Suite 1A
Bronx, NY 10463
(718) 432-5000 (Office)
(718) 432-2091 (Fax)
(917) 974-2600 (Cell)
http://www.WeichertWorks4U.com
joegreene@weichert.com
0 votes Thank Flag Link Fri Sep 21, 2012
thank you!
Flag Fri Sep 21, 2012
thank you!
Flag Fri Sep 21, 2012
It is legal if the board instituted the policy for everyone. It's not unusual and fees can vary
0 votes Thank Flag Link Thu Sep 20, 2012
thanks for the reply!
Flag Fri Sep 21, 2012
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