About three years ago, my son bought a co-op in Brooklyn. He used an experienced real estate attorney and obtained a mortgage from a major money center bank. The lawyer and my son examined all documentation before buying the co-op. This summer he placed the apartment on the market. He got an all cash buyer. The Board now is saying the co op building is income restricted and the prospective buyer makes $3000 more than is allowed. My son made considerably more than the prospective buyer. The Board turned down the prospective buyer in the grounds she made too much. My son never was told the building was income restricted. Had it been, he would have been disqualified from buying as he was making around $22000 more than the limit the Board now is saying is in effect. Does my son have any recourse? Can he sue the co-op board for deception? What about the management company? What can he do now? He needs to sell the apartment as he relocated out of state.
2 Answers from Attorneys
That's a pickle all right. I think your son's best bet is to find another buyer. It's hard to fight City Hall, and even harder to fight the co-op management company. The Brooklyn real estate market is healthy. It's going to cost more in time, money and aggravation to fight this. Put the co-op back on the market and don't let the aggravation get the better of you. It's not worth it.
New York NY
While the other atty is correct you may have other issues. You may always find buyers who don’t fit into the mold of the coop. I would want to look at the by laws and offering plan