No reason given. Apparently no responsiblity on there part to do so.
Calls from myself, the realtor, and the buying attorney have gone unanswered.
Is this legal?
Licensed Sales Agent
Weichert Real Estate, H.P Greenfield
At this point, there is no law that would compel a coop board to state why a potential shareholder has been turned down. You might have gotten a fantastic price. Coop boards do have to look out for their shareholders valuation. Sometimes a righteous deal may be lower than the board would want to see happen.
This then brings up a number of other questions about the buyer.
The best way a buyer can sail through the process in Manhattan is by being brutally honest with themself regarding their ability to purchase in any given building. Make sure your debt to income ratio is no more than 28% or lower. Credit must be at least 740. If financing, be prepared to put down 30%-50% of the purchase price and always check what the board requires. This always speaks to any board.
Make sure your post-closing liquidity is high. Some buildings want you to be liquid to the amount of the unit price. Some are OK if you have two years + of liquidity. Borderline buyers may be asked to leave up to one years maintenance in escrow.
It's truly about income, assets and credit. Nothing new there. Manhattan purchase requirements are quite stringent.
That same article makes an interesting point about lenders and qualifying financially.
Just remember the Grouch Marx quote (a telegram to the Friars' Club): PLEASE ACCEPT MY RESIGNATION. I DON'T WANT TO BELONG TO ANY CLUB THAT WILL ACCEPT PEOPLE LIKE ME AS A MEMBER http://en.wikiquote.org/wiki/Groucho_Marx That kind of captures my sentiments.
So, it varies. Common? No, but frequent enough.
Hope that helps.
About two-thirds of the City Council initially signed on to the bill, with proponents saying it would protect applicants from arbitrary rejection by co-op boards. Critics contended it would encourage litigation and scare off prospective board members. At about the same time, a state bill was introduced that would have gone even further than the city legislation. In addition to a list of reasons for rejection, this proposal would have required the co-op board to either reject or approve an applicant within 45 days. The penalty for noncompliance? The applicant would automatically be granted acceptance.
Neither bill became law, but what was defeated in New York City has come to pass with a new law in bellwether Suffolk County â€” the first in the area to ban smoking in restaurants and talking on cell phones while driving.
The Long Island country now requires cooperative apartment boards to reveal in writing their reasons for turning down potential residents. Board members could be brought to account more easily in discrimination lawsuits, and be held personally liable. Entitled "A Local Law Requiring Fairness in Cooperative Home Ownership" (Intro. Resolution Number 1763-2009, Local Law Number 36-2009), it also requires that co-op boards provide the same application to all applicants, along with information on the relevant Fair Housing and anti-discrimination laws. Once an applicant turns in an application, the board must acknowledge within 10 days that it has received it, and must inform the applicant whether the application is complete or not. The board must come to its decision to approve or deny the completed application within 45 days.