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Milagros (ta…,  in Forest Hills, Queens,...

More on "Will coop board of directors in NYC be required to give reason for disapproval of potential buyer soon?" Can we do something

Asked by Milagros (tati) Garcia, Forest Hills, Queens, NY Mon Jul 18, 2011

about it? Having served on a coop Board for 12 years, I'm pretty aware of the fact that a coop board doesn't need to give a reason when rejecting a buyer . A change in that practice not only will be beneficial to us in the real estate business, but to shareholders when they want to sell. Can we get together and do something to change this arbitrary practice?

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Hi Milagros. You downplay your experience by saying you're "pretty aware." Obviously, there is no state wide law that compells a Coop board to give a reason for a rejection. I don't necessarily agree with the "arbitrary practice" aspect as I've only encountered one rejection. In that case I knew if my customer got past the board, it was on a wing and a prayer as their financials and work history were less than stellar. I'll never know for sure but those two aspects make it darn likely. I would think there are many other agents/brokers who have had similar situations.

Even if a law is enacted state wide, I would think Coop boards might ratchet up their financial requirements and DTI ratios. I would also think as a board member for a dozen years, you might have come across instances where an application is rejected without an interview if the board felt the contract price was well below market value. So now what could be the consequence of giving a reason for a rejection? Peace of mind to the rejected party(ies)? I doubt it. A lawsuit? Probably. Would any board find that beneficial? I don't have those answers but it will be interesting to see what develops in Suffolk or Nassau counties when the inevitable lawsuit rears it's ugly head and at some point, it surely will.
0 votes Thank Flag Link Fri Jul 22, 2011
Nassau county has alread institted a law requiring Coop boards to provide reason(s), thru the efforts of LIBOR. I was told that other counties under the LIBOR also voiced about the issue, hopefully, we can have this issue solved soon for queens county. Will confirm with the president of LIBOR and provide you with more detail information.

Katie Kuo-Hwa Kao
Licensed Sales Person
Queens, NY
0 votes Thank Flag Link Mon Jul 18, 2011
Suffolk County, NY, has already instituted a law requiring boards to give a reason; hopefully the rest of the State or additional counties will follow...
0 votes Thank Flag Link Mon Jul 18, 2011
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