Home Selling in 11375>Question Details

m.dibona1, Home Seller in Queens, NY

We are trying to sell our coop, the board has made a stipulation that the buyer must put up 4 years of Maintenance in escrow and it must stay there

Asked by m.dibona1, Queens, NY Fri Mar 8, 2013

for as long as they live there refundable when they sell the coop. This would be around $68,000.00 is this legal?

Help the community by answering this question:


That means the buyer is not as qualified as they should be. It happens, at least the board is giving an option. They could have just as easily turned the buyer away.
0 votes Thank Flag Link Sat Mar 9, 2013
This amount of escrow, while seemingly excessive, may not be the worst thing that could have happened here. Obviously the buyer has issues which may include bad credit, a Bankruptcy, a sketchy work history, etc. The worst thing (for you) would be for the board to squash the deal. Through all this, they are willing (apparently) to allow the deal provided the buyer kicks up the escrow. The thing is, I'm finding that most buyers out there now are quite good regarding assets, credit, income. Somehow, you got the guy with problems. Good luck.
0 votes Thank Flag Link Fri Mar 8, 2013
Thank You
Flag Sat Mar 9, 2013
I agree with Bob, he knows Co-op laws very well. Just try to make the best of the situation. It does sound excessive. so make sure you or your buyer has an experienced Co-op lawyer who will try to negotiate a reasonable term about the amount and / or length of the escrow.
0 votes Thank Flag Link Fri Mar 8, 2013
Yes it is. Co-ops may impose whatever conditions they deem appropriate as long as its not discriminatory. Apparently the board felt that the buyer's income was not adequate unless an escrow was established.
0 votes Thank Flag Link Fri Mar 8, 2013
Is it legal to make it NON-Refundable, The Boards stipulation is that it remains there for the entire time they own the Coop. I could understand this, if they/the buyers would be able to retain the monies after 2 - 4 years. This seems a little ridiculous?
Flag Fri Mar 8, 2013
Not sure if its legal or not, but that's insane. Unfortunately co-ops have the power to make some questionable decisions. Consult an attorney.

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648
0 votes Thank Flag Link Fri Mar 8, 2013
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