Home Buying in Brooklyn>Question Details

Aya Hughes, Home Buyer in Brooklyn, NY

Can I request real estate company to give me money back for failing to earn Foreclosure apartment?

Asked by Aya Hughes, Brooklyn, NY Mon Jan 20, 2014

I tried to purchase Foreclosure coop in Brooklyn in August. I offered to purchase with cash and I got bank approval, but I got denied by Management company. They didn't want to sell the unit with the low price though the real estate company put the unit with the price without communicating with management company. Apparently, the same type fail happened few times before me, but the real estate company didn't even tell me that.

Also the real estate company and bank tried to fight with management company, but it didn't work. In the end, I spent $1000 for my attorney fee without getting anything, and so I would like the real estate company covers the amount I paid.

I need advice how this works. Thank you for your help:-)

Help the community by answering this question:


You can ask, however highly unlikely a refund will be given--keep in mind that co-op boards can deny/accept whoever they wish regardless the type of sale....
2 votes Thank Flag Link Mon Jan 20, 2014
In my opinion your Lawyer should have warned you that the board may not accept your low offer. It is not just the seller, or in this case the Banks decision as to how much is an acceptable price. It is the boards responsibility to maintain the property values and it is their fiduciary responsibility to not allow sales that are below the market value, no matter how desperate the Bank is to cut their losses.
It is to bad that the Bank has listed it with someone that probably does not normally do business in the area instead of listing it with a local Broker, that would probably get the price that the building wants and the Bank needs.
Your lawyer should have explained to you how buying a foreclosure works and also how Co-Ops work. You say you got a loan approval, so that is not considered a cash offer, does the building require more cash in the deal than your offer was being financed for? Ask what the Building will accept and see if you can get the financing/cash needed to buy it.
If you are asking for your money back from anyone, it sounds to me like it should be from your lawyer.
Kathryn Lilly, Broker
Realty on the Greene, LLC
1 vote Thank Flag Link Mon Jan 20, 2014
Kathryn's opening sentence sums it up! If you was attracted to this deal by the low price quoted then maybe this was an opportunistic deal for you mainly. You have learnt the hard way the pitfalls of coops. I recommend you write the $1000 off and move on. You got something for the money- an expensive education in some coop foibles!
Flag Fri Jan 24, 2014
he meant he got "bank approval" from the bank that foreclosed on the co-op - they accepted his offer......that's the "bank approval" he was referencing....not mortgage approval!
Flag Mon Jan 20, 2014
All coops sales are subject to the Board's approval....highly doubt you have any claim to recoup your money.

You said the real estate company and the bank tried to "fight" with the management company, so they did try to protect your interest.

Did the agent need to disclose others had been turned down?
Not sure - maybe there were additional reasons the board rejected your offer.
That's the problem when buying a coop - the boards have a lot of power.

This is just my opinion............maybe a NY agent will have a different response.
1 vote Thank Flag Link Mon Jan 20, 2014
Dear Snowman,

The real estate did nothing wrong. Co-op sales are subject to co-op board approval. This fact is disclosed to all buyers and even written into the legal contract of sale. Co-op can deny a buyer without even giving a reason and you can never be 100% certain as to whether or not you will be approved.

It is unfortunate and arguably unfair that the co-op denied you simply because the sales price was too low. In most cases the co-op does not even give the buyer a reason why they are denied, they simply deny them. By law the co-op does not ev en have to give a reason. If you try to get the co-op to put in writing why you were denied, you will find that they refuse to do so.

The real estate had nothing to do with that and you cannot put them at fault. Please bear in mind that I am not an attorney and cannot give legal advice, you should speak to the lawyer who represented you and voice your thoughts and concerns and go by what your attorney advises.

If you are looking to purchase another place or if I can be of further assistance, please contact me direct.

Mitchell S. Feldman
Associate Broker/ Director of Sales/ e-Pro Realtor
Fillmore Real Estate
Office: (718) 252-2000/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Tue Jan 21, 2014
Hi Snowman,

Unfortunately in a co-op transaction the Management company and Co-op Board wield immense power. It is not entirely uncommon for a purchase application to be turned down. In fact, even celebrities (Madonna, Jay-Z, etc) have been turned down from buying in co-ops.

It sounds like the agent/broker in this transaction was representing the owner (bank), in which case their fiduciary responsibility is to the seller. When purchasing it is always wise to have a team representing your interest (buyer's agent, buyer's lawyer, mortgage lender/broker, etc).

Neither the real estate company nor the bank profited from this transaction. In fact you mentioned that they both tried hard ("fight") to push the deal through, which probably took a lot of effort and time on their part. The only party that seemed to have profited was your lawyer. Why not try to recoup the money from the law firm?

Unfortunately you may be out of the $1000. It is a very slim chance that you will recoup from the Law firm (unless you have a longstanding relationship and they appreciate your future business). It will also be very difficult to go after the real estate company or the bank, unless you have some serious evidence proving some gross negligence or deception or something. Most likely you will not win any sum in court. Maybe you can scare them into paying without going to court, but that will be a very slim chance (since both the bank and real estate company no doubt have good counsel).

If you are still interested in purchasing, you should assemble a team that represents your interest. If you need a real estate professional feel free to reach out to me.


Winston Maragh
250 Park Avenue South, New York, NY 10003
Phone 347.631.4330 | Fax 917-262-7371
Sales + Rentals. Knowledge + Guidance.
0 votes Thank Flag Link Tue Jan 21, 2014
Snowman - both the real estate company, and agent, don't get paid unless there is a sale AND closing.

If they had known your offer didn't stand a chance of being approved, why would they waste any time on it????
That just wouldn't make sense, would it?

There was absolutely NOTHING in it for them to withhold information from you.

Now, the board has apparently let them know what number they would consider........so the new price reflects that.
0 votes Thank Flag Link Mon Jan 20, 2014
Hi Debra,
Thank you for the reply. I know, right? I don't get it why the real estate agent kept trying with low prices though they had rejections few times. Actually, the agent was pushing me so bad and kept calling me at least 5 times before I submitted the application. If she was nice, I wouldn't even had this kind of idea, but she drove me crazy. I don't get it why the agent and bank even try and wasted the time.
Flag Mon Jan 20, 2014
Thank you for your comment. My offer was by cash though. The management company didn't even go through my application because the price was way too low. The lady of the real estate company had told they have been experiencing same things few times.

Now the unit is on the market again with twice much price the before. I feel like the real estate company has been knowing issues and didn't tell me could be cheating.
0 votes Thank Flag Link Mon Jan 20, 2014
You can ask, but my guess is they will say no. They did not turn you down so I don't see why they would pay. You took a chance and paid a lawyer, why not ask them for the money back?
0 votes Thank Flag Link Mon Jan 20, 2014
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