Gab3578, Home Buyer in New York, NY

What happens when a board member takes an apartment gives it to her friend and spends 12,000 from coop money without a vote or no approval from any?

Asked by Gab3578, New York, NY Sat Jun 1, 2013

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An attorney who specializes in real estate can better answer, consider a consultation; what do the other board members suggest...
1 vote Thank Flag Link Mon Jun 3, 2013
Sounds like a question for an attorney...

1 vote Thank Flag Link Sun Jun 2, 2013
Hi Gabe,

Since you mentioned hurricane Sandy I would give the board member the benefit of the doubt. Sandy was an unusual disaster that wreaked havoc in downtown Manhattan and other areas. People were displaced and even NYC streamlined and attempted to expedite their usual long bureaucratic procedures to place homeless victims and re-build.

Having said that, there are apartments in some coops that the board owns. In HDFC coops in particular. Apartments that the board owns. They can sell the units but many coops lease them to generate income for the coop. These apartments are not sponsor or un-sold shares because all the shares were allocated when the city sold the building and the HDFC was incorporated.

As Nick said if it's "hearsay" check the facts to be certain there was any impropriety. Coops are private corporations with very little accountability and transparency.

Real estate brokers and salespersons are licensed by NY state. Brokers must take 75 hours of education courses exams and 22.5 hours of continuing education every two years. To become a Director of a coop board there is no education, training special skills or knowledge of law, real estate or fair housing required.

While the majority of coops in Manhattan are well run, managed and operate in the best interest of their shareholders there will always be some bad apples in NYC.

Good luck,

Mitchell Hall
Lic.Assoc. RE Broker
The Corcoran Group
1 vote Thank Flag Link Sun Jun 2, 2013
Mitchell Hall, Real Estate Pro in New York, NY
Call your coop attorney and advise him/her of the situation. If you do not know who the attorney is, contact your managing company and ask. If this is just "hearsay" I'd double/triple check the facts before doing so.

Good luck,

Nick Rafello
Licensed Associate RE Broker
The Corcoran Group
1 vote Thank Flag Link Sun Jun 2, 2013
are you on the board? if not, you should speak to a real estate attorney and discuss this with the other bd members and owners in the building.
0 votes Thank Flag Link Wed Jun 5, 2013
Does your board have an attorney? They need to talk with one sooner than later. Would think that criminal charges would be a possibility.
0 votes Thank Flag Link Sun Jun 2, 2013
I'm not even a board member. But the advice of a lawyer sounds very good. After sandy everything went wrong. I live on midtown now and the building I'm talking about is on ave c in lower man.
0 votes Thank Flag Link Sun Jun 2, 2013
We had an emergency meeting and the president said that she didn't need anyone's permission with giving up apartment and she confessed to the use of the money, can criminal charges be bought against her and her buddie
0 votes Thank Flag Link Sat Jun 1, 2013
Hello Gab. These are just my thoughts so take them with a grain of salt. You know all this how exactly? Are you a board member? Did you hear this info second or third hand? It is best to have exact evidence before you accuse anyone of impropriety. If money was indeed taken, that (I'm NOT an Attorney) might be considered theft. If this friend is already in the apartment, I don't know how you would get them out or if that is something you want to try and do anyway. I would suspect these action might require their removal from the Coop board at the very least.

Lastly, I don't see how a board member could "take an apartment" in the first place. A resale can't be taken, only bought. If this person is the sponsor and it was a sponsor unit, you're out of gas as they can sell to whoever they want without any vote or approval. Best to check you facts, then talk to the other board members to see if you can get a consensus then go see an Attorney. Be ready for plenty of bad blood. Good luck.
0 votes Thank Flag Link Sat Jun 1, 2013
I'd say it time to get out of there:
You are looking into the eye of a hurricane!
0 votes Thank Flag Link Sat Jun 1, 2013
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