Home Selling in Chelsea>Question Details

Gena Riede, Real Estate Pro in Sacramento, CA

Do coops give reasons for rejecting a buyer?

Asked by Gena Riede, Sacramento, CA Wed May 16, 2007

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Tony Lara’s answer
Unfortunately not at the moment, unless the law changes and I'm not holding my breath. I can only speak for myself and say that none of my clients have ever been rejected from a co-op. I work closely with my buyers and go over their finances in detail to determine that they are finanically strong. When it's time for the interview I strongly suggest a corporate attire and I send them a list of the dos and don't and I usually meet them before the interview and wait in the lobby. I haven't had any issues but there are rejections, as for the reason it remains unknown.

Tony Lara
Licensed Real Estate Salesperson
Rutenberg Realty
tlara@crrnyc.com
0 votes Thank Flag Link Mon Mar 28, 2011
BEST ANSWER
Hi Christine, Yes it is a bill in the city council but it has not passed yet. In fact it was a council member from Queens who introduced it. There is support for it but REBNY the real estate board of NY is against it because they represent management companies who represent coop boards. They are lobbying the city council members to vote against it by arguing that it will open up coop boards to lawsuits.
Web Reference: http://nycblogestate.com
2 votes Thank Flag Link Wed May 23, 2007
Mitchell Hall, Real Estate Pro in New York, NY
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Under current law coops do not have to offer any explanation when they reject a potential buyer from their building.
5 votes Thank Flag Link Wed May 16, 2007
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
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Mitchell, I thought I heard that there was going to be a law mandating that all co-op boards need to disclose WHY they are objecting. I have yet to see it, but did you hear of the same thing out by you?
3 votes Thank Flag Link Wed May 23, 2007
Though co-op Boards are not required by law to do so (yet), experienced agents (and attorneys) can find out the reason. The law will eventually be passed requiring disclosure. There is case law (I am a lawyer & broker) that says the decision must be based on the "business judgment rule" (ie financial reasons) and cannot be otherwise in violation of law (eg discrimination laws). If you suspect discrimination (by the questions asked at the interview) you can bring an administrative proceeding (at no cost) and at such hearing the board is legally REQUIRED to disclose the reason. See the blog post below.
1 vote Thank Flag Link Sat Jun 2, 2007
Closer than ever before, but what will it really mean? Nothing...you cannot read minds, board members vote on approvals and the reason they give for a vote may vary and may not be the real reason.
Rarely have I seen a rejection that I could not tell you why it happened. Only 1 in 20 years...of course I have not had trhat many...only about 10 in 20 years and all but one deserved it--mostly they failed to disclose when they made offers or plain lied and got caught.
Be truthful with your agent and the board...the alternative can be very unpleasant when they find out...and they usually do.
0 votes Thank Flag Link Tue Apr 6, 2010
In Suffolk County they do. Suffolk County Executive Steve Levy, flanked by members of the Long Island Board of REALTORS, signed landmark legislation Monday which provides protection for prospective cooperative home buyers against discrimination. The new Suffolk County law, the first in New York State, requires cooperative boards to provide a written explanation for denial within 45 days, and provides enforcement powers to the Human Rights Commission.
Web Reference: http://www.clovelake.com
0 votes Thank Flag Link Sun Nov 15, 2009
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