board oversteps its authority

The board was stealing the flip taxes? And divvying them up amongst themselves? That would be brazen. To do it there'd have to have been collusion with the managing agent, lawyers, and who knows who else. It'll make a good case if anything comes of it. Same with money passing from seller to board member.

NWT, no, it looks like they did not steel the money. The flip tax went to the building fund. But the flip tax itself was never put through the appropriate legal steps. So the sellers just assumed that it does exist but apparently nither the board nor the managing agent could provide the proof that it was legal.

Ah OK. I think it requires a change to the bylaws. The bylaws will explain what it takes to change the bylaws. We did it in this building a couple of times. No big deal.

Still don't get why a seller, sitting next to their own lawyer, would cough up money they weren't required to pay. Not in bylaws, no flip tax. Then again, sellers are gone. Bye, it's been swell, thanks for the cash, don't let the ...

Because the management threaten to hold up the closing. The seller's lawyer is going to sue the board, board members and the management agent.
The thing is, it does happen. Owners don't question their boards and take their word for everything.

There are LOTS of buildings where the flip taxes were never enacted properly.

The biggest problem is that with rulings like Pullman, Coop attorneys are in general telling Boards they can do whatever the fuck they want. And it's self serving, because when they get sued over it, it's the same attorneys who are the beneficiaries. I'm involved in a case right now where the Coop's Attorney stood up at a meeting of the shareholders and GUARANTEED a win!!!!!!!! Interestingly enough, the judge told the Coop's attorney they better settle because they had no case, but the Coop won't settle..... perhaps because they were guaranteed a win?

fwiw, it is not always necessary to change by-laws to enact a flip-tax. some by-laws are written so as to grant to a board the right to impose a flip tax without a shareholder vote. The shareholder remedy is to vote the board out the next election. Beyond that, there's little to be done if the by-laws permit such action.

What I don't understand is why does your friend still want to be in this building? Personally I'd be looking for ways to come out of this with my deposit back and argue that things being demanded are not in the contract or whatever, but I certainly wouldn't be looking for ways to insist that I get into this building. Even if the facts are actually different than you say, what you relate is what your friend believes to be the truth. So why does she want to live there?

At one board interview all the board members insisted that I remove my shirt so they could fondel my man boobs. It was my first coop board interview and my broker did advise me b4 the interview to go with the flow. I was really disapointed when I was rejected...I thought with some of them...I made a connection.

Anyway...I know how you feel.

You didn't read between the lines. Fondle your man boobs really means something more sinister, but they just can't come out and say it.

kylewest, my friend is the SELLER, so she does NOT want to be in that building. She's the one whose SELLING closing was threatened by the board/management.