nyc when a co-op shareholder needs a lawyer

What are the laws for co-ops in New York State?

Mar 03, 2022 · The Co-op ’ mho affairs are governed by the terms of the Co-op ’ s By-Laws, its proprietorship Lease a well as the New York Business Corporation Law ( in many, but not all instances ). There are many Co-op ’ mho that are besides created under the Private Housing Finance Law ( “ PHFL ” ) and Schneider Buchel is familiar with such laws ...

Who is the owner of a co-op apartment in NYC?

We also help co-op or condo owners who are facing eviction, foreclosure or injunction actions. Learn More About Us. If you are seeking a qualified, trusted legal team to help with an issue involving a cooperative or condominium, reach out to our team to learn more about us and how we can help. Call 646-835-2656 to schedule a consultation. We offer competitive hourly rates …

What are the rules of a co-op corporation board?

Co-op and Condominium Law One of the firm's central areas of practice has been representing cooperative corporations and condominium boards since 1982. The firm's lawyers build lasting relationships with co-op and condominium clients, many of which have spanned the course of 20 years, by providing cost-effective, high-quality representation. Clients trust that, should...

What does a co-op lawyer do?

We protect the rights and vested interests of boards, shareholders and owners. When out-of-court remedies are exhausted, we apply our formidable litigation approach to represent clients in city, state and federal courts of New York City. Please call our New York City co-op law lawyers at 212-317-9500 for all legal issues pertaining to condos and cooperatives, or contact us online to …

How do you fight a co-op board?

You may sue your co-op If the co-op is structured as a corporation and larger, then this body would be the board of directors. You can have a dispute with the co-op and sue it the same way you would sue any other type of business. Being a shareholder and part owner does not make you ineligible to sue.Feb 5, 2019

Can you get kicked out of a co-op?

If you are a tenant in a co-op, you can be evicted. The board can start a non-payment proceeding or a holdover proceeding against you in Housing Court. Co-op boards have a lot of freedom in deciding how to run their buildings and whether to evict a tenant for objectionable conduct.

How do I get out of a coop contract?

Review your co-op's bylaws. ... Draft a letter of intent to drop your membership and leave the co-op. ... Sign your letter of intent in front of a notary. ... Meet with co-op officials within a week of your move out date. ... Pack your belongings ahead of time.

Who regulates coops in NYC?

The New York State Attorney General's Office Real Estate Finance Bureau is charged with enforcing Article 23-A of the General Business Law (the “Martin Act”) and governing regulations that regulate the offer and sale of real estate securities, including cooperative interests in realty, syndications, and intrastate ...

Is it worth buying a co-op in NYC?

As a general rule, buying a co-op is cheaper than buying a condo. This affordability is the primary perk of purchasing a NYC co-op. You'll also enjoy lower closing costs if you buy a co-op as you won't have to worry about title insurance or the mortgage recording tax.Feb 1, 2022

Which of the following is considered chattel?

Chattel is the tangible personal property that is movable between locations. It can refer to either animate or inanimate property such as hogs, furniture, and automobiles. This property can be borrowed against using a chattel mortgage.

What happens if you leave a coop?

When leaving a co-op profile, if there's still at least a member on it, the Private Island will still remain available for them. All the player's items and progress on the co-op profile will be removed and is salvageable by their co-op members.

What does a cooperative owner receive at the closing?

After closing you will receive a binder from us containing all of the relevant documents from the transaction. You then get to live happily ever after in your new coop until of course it is time to sell and buy a new property.

How do you sell shares in a co-op?

When you move, you sell your stock in the co-op. In some co-ops, you may have to sell it back to the corporation at the original purchase price, with all the stockholders sharing collectively in whatever profit is made when the shares (unit) are resold. In others, you get to keep the profits.

Do coops have a fiduciary responsibility to shareholders?

Fiduciary Duty of Obedience, Loyalty and Care In general, good faith includes doing what is proper for the co-op, treating stockholders and patrons fairly, and protecting the shareholders' investments in a diligent, careful and skillful manner. The duty of loyalty is the fiduciary duty that is most often litigated.Jul 19, 2017

What does the owner of a cooperative own?

Co-Op, Defined A co-op, or housing cooperative, is a type of housing owned by a corporation made up of the owners within the co-op. The corporation owns the interior, exterior and all common areas of the building.Nov 15, 2021

What is the fee for the sale of a co-op unit known as?

Flip Tax. A fee paid by a seller or buyer on a housing co-op transaction. It is not a tax, and not deductible as a property tax. It is a transfer fee payable upon the sale of an apartment to the co-op. Proprietary Lease.

Firm services

Kellner Herlihy Getty & Friedman have represented cooperative corporations and condominium boards ranging from a few units to thousands of units, including low-income housing cooperatives (HDFCs), Mitchell Lama buildings and private co-ops and condominiums of all income ranges. Clients rely on the firm to:

Contact additional information

Contact Kellner Herlihy Getty & Friedman online or at 212.889.2821 to schedule a free consultation in our office or at your building. The firm's Park Avenue office is easily accessible by public or private transportation, and there are professionals on hand who are fluent in Spanish, French, Russian, Farsi and Italian.

Experienced Legal Counsel in New York Cooperative and Condo Law

Co-op and condo matters may involve bylaws, proprietary leases, house rules, regulations or leases. Our diverse experience allows our legal team to navigate a solution-directed strategy with the option of litigation when it becomes apparent that conflicts must be resolved in court.

Contact Us for Comprehensive Service in NYC Co-op and Condo Law

We enable co-op and condo boards, as well as unit owners, to avert problems and to deal resolutely with those that arise. We protect the rights and vested interests of boards, shareholders and owners.

How are co-ops managed?

Co-ops are managed by a board of directors. The board of directors is elected by and (generally) made up of shareholders. The corporation board must follow the rules in the by-laws of the co-op and also the proprietary lease. The by-laws and your proprietary lease state the rights and responsibilities of the corporate building owner and ...

What is a co-op lease?

The lease between you and the building is called a “proprietary lease.”. You pay a monthly maintenance fee to the corporation to cover the expenses of maintaining and operating the building, the property taxes and sometimes for the underlying mortgage on the building. Co-ops are managed by a board of directors.

What is condo building?

The condo building is divided into individual units and a common area. You own your apartment unit and an undivided interest in the common area. You are responsible for paying your own real estate taxes and your share of common charges for the expenses to maintain and operate the common areas and the building systems.

Can you be evicted from a co-op?

If you are a tenant in a co-op, you can be evicted. The board can start a non-payment proceeding or a holdover proceeding against you in Housing Court. Co-op boards have a lot of freedom in deciding how to run their buildings and whether to evict a tenant for objectionable conduct.

Is a co-op a tenant?

If you live in a cooperative (also known as “co-op”) apartment, you are the owner (shareholder) and a tenant at the same time. You own shares in the corporation which owns the building, but you are also a tenant who rents an apartment from the corporation. You will be considered a tenant/shareholder.

How long can a shareholder sublet an apartment?

There are some buildings that only allow subletting on an emergency basis, and will only allow shareholders to sublet their apartments for a total of one or two years, meaning that a shareholder can only sublet one or two years in their entire lifetimes. Co-ops are even tougher when it comes to selling your apartment.

What does a counsel do?

Counsel provides advice on all legal matters affecting the corporation. This includes, but is not limited to, drafting and reviewing contracts and other legal documents, representing the corporation at closings on sales of units, and representing the corporation in litigation.

What is the purpose of a committee in a corporation?

COMMITTEES. The Board of Directors has created committees to concentrate on certain areas of management within the corporation and to assist in making decisions. Committees are assigned projects by the Board, and are expected to study the subject in depth and make recommendations to the Board based on their research.

Where is the bulletin board located?

BULLETIN BOARD. To keep all residents informed of developments and information of importance to the cooperative, a bulletin board is located in the lobby. Notices, announcements and information are posted on the bulletin board by the Board of Directors, the Superintendent or the Managing Agent.

What is the buzzing doorbell in the lobby?

Buzzing the doorbell marked “Super” in the lobby. The doorbell is attached to a beeper that will alert him at any location in the building; he will arrive at the front door as soon as possible.

How long is the term of a board member?

At the annual meeting of shareholders, held each spring in accordance with the bylaws of the corporation, Board members are elected to a one-year term of office. Board members who have an approved resale package are expected to resign.

Where are fire extinguishers located in an apartment?

Fire extinguishers are located in both stairwells on every floor, in the Superintendent’s apartment, the laundry room, the generator room, the gas and electric room, the compactor room, and the passenger elevator motor room. If there is a fire in your apartment, call the fire department at once.

Services for Cooperative and Condominium Boards

General legal advice – We advise board members and officers on a wide variety of business and legal matters.

Services for Individuals

We also provide legal services to individuals in the purchase or sale of a cooperative or condominium unit as well as in disputes with boards.

Why We Are Better

Our cooperative and condominium practice distinguishes itself from other firms in the following ways:

How are co-ops established?

Some background: co-ops are generally established by a sponsor which files an offering plan with the Attorney General’s office and then sells co-op shares to the public . A co-op board of directors is elected by the co-op’s shareholders, according to its bylaws. In the early phase of a co-op, the sponsor usually owns most of the shares and thus controls the board of directors. In most cases, the Attorney General requires sponsors to give up their control of the board after they sell over fifty percent of the shares, or after five years have passed since the closing, whichever comes first.

What to do if the board does not respond to an oral request?

If the board does not respond to an oral request, write a letter. Make it concise, factual and not hostile. Keep copies of any letter or other paperwork you send and notes of telephone conversations (date, time, who called whom, and the gist of the conversation) in case the matter is not quickly resolved.

What is the BCL law?

The Business Corporation Law (BCL) is the main New York State law which governs how most co-ops must operate, with court decisions providing the case law which interprets the statute.

What is a co-op in real estate?

A co-op is structured differently than a condominium. The co-op is a business that owns the real estate. The co-op is not the real estate itself. When you buy into a co-op, you are purchasing shares of a corporation. As a shareholder, you own a portion of the business and are one of the many owners of the real estate (though there are non-equity co-ops, too, which work a bit differently). Also, as a shareholder, you are given exclusive rights to and use of one of the housing units on the property.

What to do if you are co-op and you are being violated?

If you and the co-op cannot come to a resolution, and you believe your rights are being violated, call an attorney to discuss your options. By talking with a residential real estate attorney, you will gain an experienced and knowledgeable opinion regarding your rights and the relevant law, and whether your rights or the law have been violated. A lawyer also can provide insight into the possible and likely outcomes of a lawsuit.

What is housing cooperative?

Housing cooperatives, better known as co-ops, can be ideal living situations for individuals who value community, financial stability, and want something slightly cheaper than a condo. However, as in any living situation, problems can arise.

Who is Victoria Langley?

Victoria Langley, Contributor. Victoria E. Langley is a legal content writer living in the Pacific Northwest. She holds a B.A. in philosophy from Northern Illinois University and a J.D. from the John Marshall Law School of Chicago. She strives to combine her passion for the law and writing.

What does it mean to be a shareholder?

As a shareholder, you own a portion of the business and are one of the many owners of the real estate (though there are non-equity co-ops, too, which work a bit differently). Also, as a shareholder, you are given exclusive rights to and use of one of the housing units on the property.

What is a small co-op?

Smaller co-ops tend to be highly cooperative living arrangements in which every resident has a say and helps maintain the real estate. Larger co-ops tend to have a board of directors, made up of a small percentage of residents, which makes significant decisions for the property.

What is the best way to resolve a dispute outside of court?

An attorney might recommend utilizing an alternative dispute resolution method, such as mediation or arbitration, with the co-op to resolve the issue outside of court. Mediation or arbitration can also take time and accumulate costs, but they are known for being less costly than a lengthy and contentious lawsuit. +.