Posted on 04/18/2017 5:54:19 PM PDT by Kaslin
Depends on what the legal coop paperwork says about eviction and corresponding state law.
Interesting case. Some lawyers are going to make some good money on that one.
This leads me to believe that a co-op board can exercise a lot of power over residents that a condo board cannot.
It depends on whether its a ‘house rule’ or a by-law.
While the Board of Directors can change the house rules, typically a change to the bylaws, which are usually incorporated into the proprietary lease, would require a 2/3 vote of the outstanding shares. It’s all under New York State corporate law.
In these big-money cases, everyone will lawyer up, and the litigation will go on for years.
It seems to me that a fair compromise might be to disallow smoking (if it’s legal to do so) for anyone moving into the co-op property but grandfather in an exception for current owners and tenants who choose to smoke. the problem will fix itself over time.
Purchasing property with covenants is extremely commonplace. If a person buys a condo (co-op) with a covenant that allows behavior within the condo to be regulated, then that’s the way it is. Look at some of the ridiculous rules that HOAs can apply to homeowners in a development. This is a totally feasible extrapolation of the same principle...
Yes.
But in the case of the co-op, the co-op corporation owns the property, and you are only entitled to a proprietary lease linked to your shares. However, changing a proprietary lease can be tricky, and most co-op corporations try to avoid the trouble and expense.
Even condos can ban——with a vote by owners———66-67% in most cases.
In the article, the writer states several times that the units are purchased just like buying a house.
Simple, they can grandfather in all existing owners.
And only allow sales to those who agree not to allow smoking in their units.
They might be able to evict the owner...maybe. I don’t see how they get out of paying them out for the fair market value of the unit.
This is exactly why you examine the incorporating documents of the co-op and what exactly your rights and obligations are.
I wouldn’t go anywhere near that sort of place. My former townhouse HOA was bad enough, can’t imagine an apartment co-op.
The process is very similar but the differences in the ownership arrangements make for some critical legal distinctions. A co-op board can reject potential owners, for example, in ways that a condo board cannot. People in high-end NYC co-ops run into this problem all the time.
It might depend on whether it’s a bylaw issue or a master deed restriction. I am working with a condo association where and amendment to the master deed requires unanimous consent.
Thanks——I was not aware of the difference.
(I learn something new everyday here.)
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Don’t see how they could if you are already there. I’m sure they can for future residents.
You’re welcome! Another thing to keep in mind is that condo laws may vary a lot from state to state.
Well, as I have said, a condo and a co-op are two entirely different types of legal entities, and different laws apply.
>>In the article, the writer states several times that the units are purchased just like buying a house.<<
I know co-ops are different than condos but not the differences. I do know they are able to screen — and reject — prospective buyers with no worries about Equal Housing laws.
It would be interesting to know how this happens (although I can conjecture).
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