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Buying is ALWAYS a BIG Mistake

Started by gsung
about 16 years ago
Posts: 2
Member since: Dec 2009
Discussion about
ONCE BITTEN Rene Gonzalez and Colleen Mathis moved to get away from mice. WHEN it comes to homes and spouses, one bad experience can alter a person’s choices forever. TWICE SHY Laura Zanzal and her roommate Alex North have discovered the joy of a live-in super. And in New York City, where there are untold challenges to vertical living, a seemingly endless number of pitfalls lie in the real estate... [more]
Response by The_President
about 16 years ago
Posts: 2412
Member since: Jun 2009

I've owned for most of my life and never had any major problems ther than rude elderly neighbrs. Your a fool if you think that buying is ALWAYS a mistake.,

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Response by NYCMatt
about 16 years ago
Posts: 7523
Member since: May 2009

Um ... and the point of this article is ... what? Don't live in a city?

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Response by NYCMatt
about 16 years ago
Posts: 7523
Member since: May 2009

All these horror stories are from RENTERS.

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Response by The_President
about 16 years ago
Posts: 2412
Member since: Jun 2009

renting can also be a bad idea too. WHat happens if you get stuck with a slum lord? Everytime I watch Fox 5, they always seem to profile a slum lord abut every week.

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Response by alanhart
about 16 years ago
Posts: 12397
Member since: Feb 2007
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Response by gsung
about 16 years ago
Posts: 2
Member since: Dec 2009

Battery Park City doesn't have problems like them.

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Response by w67thstreet
about 16 years ago
Posts: 9003
Member since: Dec 2008

Thank goodness these stories are for renters. Imagine going from dead cat, rodents, aa meetings, crazy neighbors and road noise paying 6% a clip. A friend once said as we backbacked thru Europe and Asia. Crap if I keep changing currencies enough, I'll have nothing left.

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Response by youngbuck
about 16 years ago
Posts: 39
Member since: Apr 2009

Buying isn't a mistake. The only time its a mistake is when you buy wrong, i.e. you paid 3.5m USD for a two-bedroom apartment.

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Response by falcogold1
about 16 years ago
Posts: 4159
Member since: Sep 2008

Every renter I've ever lived near has a horror story to tell.
The good news is that we were all renter so at least there was a reasonable chance that the conditions would change. Let me share a renter nightmare that happened to a downstairs neighbor oh...about 1991.
I had moved to a 1 bedroom walk up rental on the UWS. The bedroom needed an in window AC so I took it upon myself to do the instillation. Basically my plan was to secure the window unit and cool my apartment. Several hours later we had a secure unit and a chilly pad. All was right with the world...or was it?

In window AC units have to be slightly tilted backwards to allow the condensation to form and then drip away from the building. At the time of instillation I was not focused on the thermodynamic components of the experience. I tilted the unit ever so slightly towards the building. Unbeknownst to me water was dripping toward this ancient UWS townhouse and draining into the in between space in the front wall and collecting above the ceiling of my downstairs neighbor. My place was fine and I was unaware of any problems transpiring.
I can't even imagine how much water collected in the ceiling but I'll bet it was A LOT!!!
When the dam broke it was amazing! The entire ceiling of my neighbor collapsed. Ton of water and debris filled the apartment. The destruction had a 'mini' Katrina like effect. I had no idea what caused the problem let alone the fact that it was me! I told as coworker about what had happened and without ever being in my place diagnosed the problem. He came home with me that very evening, to examine my AC unit and then spent about 10 minutes correcting the angle to insure that it would drip away from the building. The very next day the landlord arrived at my apartment with his expert handyman, screaming accusations, naming me the culprit of his building’s demise. I quickly established a position of plausible deniability. The owner ranted and raved as his trusty handyman evaluated my AC insulation. Imagine my relief when the handyman announced unequivocally that my AC unit was installed properly and was NOT the cause of the ceiling failure which allowed me some maneuver room for my own little drama.
HOW DARE YOU ACCUSE ME OF BLAH BLAH BLAH....

I tell you...shit happens.

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Response by stevejhx
about 16 years ago
Posts: 12656
Member since: Feb 2008

The reason that I like to own is because I LOVE CO-OP BOARDS.

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Response by PMG
about 16 years ago
Posts: 1322
Member since: Jan 2008

Falcongold, It helps to be in a full service building where you have an in-house superintendent, an on-staff handyman, and a managing agent to handle any crisis in real time. There is very little drama. You probably would have had expert assistance with the A/C installation had you been in a larger building.

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Response by The_President
about 16 years ago
Posts: 2412
Member since: Jun 2009

you can own without ever seeing a co-op board. It's called a condo.

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Response by kylewest
about 16 years ago
Posts: 4455
Member since: Aug 2007

Ditto Steve! Boards nip problems in the bud, won't tolerate b.s. from bad neighbors, prevent tenants who don't give a damn about the building or anyone else in it because they have no skin in the game, maintain the building so your home looks great unlike a LL exacting every cent from the renters, and if you don't like things you can get on the board and change them yourself if your views are shared by others. I freakin' LOVE coops. People who have most trouble with coops have shady finances, don't play well with others, make bad neighbors, want to rent out their places to anyone and would happily inflict a crappy tenant on other owners. Now, some people find a condo they like and get it but have not much opinion one way or other about coop vs. condo. But those people who are all "ooo, I have ALL coops. Coops are soooo baaad," are the ones who worry me. I'm glad they feel that way because I sure as hell don't want them sharing my building.

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Response by NYCMatt
about 16 years ago
Posts: 7523
Member since: May 2009

"I LOVE CO-OP BOARDS."

Me too!

That's why I'm on one!

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Response by stevejhx
about 16 years ago
Posts: 12656
Member since: Feb 2008

I know, Matt - in the past I've read some of your enchanting dissertations about your fantasy of absolute power.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

so matt---how many of your fellow shareholders have you thrown out in the last couple of years?

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Response by beatyerputz
about 16 years ago
Posts: 330
Member since: Aug 2008

Here's a couple recent true stories from owners I know:

1. Bought his apartment in 2007, thinking that he needed to own and it was stupid to rent. Watched his maintenance shoot up. Lost his job. Had to move out of town. Put his apartment on the block and was lucky to sell it, but lost 90% of his equity.

2. Woman I know lives in a building on upper east side. Facade of building collapsed, needs to be replaced. Her assessment was in the tens of thousands.

Ouch, talk about nightmares. Guess it happens regardless if you rent or own. As for me, my rental apartment is in a great location, quiet as can be. Only complaint is that occasionally the person upstairs treads heavily above my living room. Or that it takes a couple extra days for my landlord to fix something in my apartment. That's okay - it doesn't cost me anything.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

except of course, if you rent, all you have to do is wait. if you own, you have to wait and then pay through the nose.

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Response by NYCMatt
about 16 years ago
Posts: 7523
Member since: May 2009

Interesting stories, beat.

I know of two people who bought within the past two years ... lost their jobs ... one is forced to sell (thank God she was even able to squeak out enough of a profit to pay the realtors and a modest sum for moving expenses) ... the other is so far underwater that his only option is to just sit tight and wait for the foreclosure proceedings (or to find a job, whichever comes first).

Ironically, if you've lost your job, blown through your savings, and can't afford your apartment, you're in a much better position as an OWNER (at least now, with all the banks being overwhelmed with foreclosures), because the process of being forced out of an apartment you own but have stopped paying the mortgage is much, much longer than being forced out of an apartment on which you've stopped paying rent.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

so...

much better to buy and lose everything because ?

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Response by anonymous
about 16 years ago

Doing the math on this: Bought his apartment in 2007, thinking that he needed to own and it was stupid to rent. Watched his maintenance shoot up. Lost his job. Had to move out of town. Put his apartment on the block and was lucky to sell it, but lost 90% of his equity.

Buy a $1MM co-op, put 20% down = $200,000. Lose 90% of equity means equity down to $20K and apartment down to $820K, so the apartment is down 18%.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

but...nothing like the pleasure of ownership.

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Response by stevejhx
about 16 years ago
Posts: 12656
Member since: Feb 2008

"because the process of being forced out of an apartment you own but have stopped paying the mortgage is much, much longer than being forced out of an apartment on which you've stopped paying rent."

Not in a co-op it's not. It's the exact same procedure as eviction: call the sheriff.

One more Matt theory down the drain.

And remember: New York is a recourse state: if you don't pay off your mortgage, the bank can go after your other assets to make up the difference, & can even garnish you future wages.

Nice.

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Response by kylewest
about 16 years ago
Posts: 4455
Member since: Aug 2007

Steve, you are such freakin' wise. I had no idea all a LL or Board had to do was pick up the phone and call the sheriff! Silly me thought there were lawyers, judges, court appearances, orders, time tables, and something called due process that had to be followed. Man, why do I always think things are so complicated. Thank you for clearing me up on that.

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Response by NYCMatt
about 16 years ago
Posts: 7523
Member since: May 2009

"Not in a co-op it's not. It's the exact same procedure as eviction: call the sheriff."

Only after the case has wound through the courts.

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Response by pchikosh
about 16 years ago
Posts: 10
Member since: Dec 2009

Cant be evicted from a co-op unless you dont pay maintenance which is a fraction of the rent in a rental.

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Response by NYCMatt
about 16 years ago
Posts: 7523
Member since: May 2009

"Cant be evicted from a co-op unless you dont pay maintenance which is a fraction of the rent in a rental."

And even if you don't pay maintenance, it still takes forever to evict a problem shareholder.

I know -- we're going through this very situation right now. So far it's taken 18 months and counting, between the court appeals and delays.

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Response by pchikosh
about 16 years ago
Posts: 10
Member since: Dec 2009

That is pretty embarassing for the building

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

mainematt: on another thread, you told us how easy it was to evict a shareholder. now you're changing your mind?

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

just in case you already forgot:

NYCMatt
about 3 hours ago

The board cancels the shareholder's proprietary lease, essentially forcing them to either hold onto shares in a building in which they cannot live (or sublet), or sell.

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Response by pchikosh
about 16 years ago
Posts: 10
Member since: Dec 2009

Hey have some empathy guy for people in tough spots.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

NYCMatt
about 3 hours ago

It depends on each building's bylaws. Many boards DO reserve this right, but other buildings require a majority vote of all shareholders.

columbiacounty

so, mainematt, does the board have the right to do this unilaterally?

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Response by NYCMatt
about 16 years ago
Posts: 7523
Member since: May 2009

"The board cancels the shareholder's proprietary lease, essentially forcing them to either hold onto shares in a building in which they cannot live (or sublet), or sell."

Precisely.

I didn't say it was quick or simple. I said it could be DONE.

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Response by pchikosh
about 16 years ago
Posts: 10
Member since: Dec 2009

You too have some empathy.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

hah, hah, hah.

you are a fucking dumb ass.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

hey, i'm gonna be the next president of the united states.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

"I didn't say it was quick or simple. I said it could be DONE."

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Response by pchikosh
about 16 years ago
Posts: 10
Member since: Dec 2009

Hey, behave we are talking about people down on their luck.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

is matt down on his luck? sorry, i didn't realize.

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Response by pchikosh
about 16 years ago
Posts: 10
Member since: Dec 2009

People being evicted are. Now stop it.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

here's matt on the holiday spirit:

"Slip a card into the building's Extortion (Holiday Bonus) Box with a receipt from your favorite charity, showing that you made a donation in all of their names.

Their hearts will be warmed by your holiday spirit."

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Response by pchikosh
about 16 years ago
Posts: 10
Member since: Dec 2009

Stop it I said.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

oh...no...its you.

help, alan....hfscomm1 has re-emerged.

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Response by stevejhx
about 16 years ago
Posts: 12656
Member since: Feb 2008

Well, kylewest, you would be wrong:

http://www.cooperator.com/articles/871/1/Push-and-Pullman/Page1.html

The Pullman decision grants co-ops the right to evict tenants under the business judgment rule, without judicial review. There is no winding through the courts for co-ops. Condominiums are another matter, as there's no lease.

http://cooperator.com/articles/512/1/Settling-Co-op-Disputes/Page1.html

It's a summary proceeding in housing court. Very fast.

http://www.thefreelibrary.com/Borrower+beware:+Most+co-op+foreclosures+get+fast-tracked-a065227644

So kyle and Matt, welcome to the real world.

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Response by pchikosh
about 16 years ago
Posts: 10
Member since: Dec 2009

Heaven help some of you people.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

couldn't stand being ignored, huh?

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Response by pchikosh
about 16 years ago
Posts: 10
Member since: Dec 2009

You were talking about kicking people out of their places and now what are you talking about. Stop it.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

you have to work on changing your style as you morph...this was way too obvious.

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Response by evnyc
about 16 years ago
Posts: 1844
Member since: Aug 2008

The problem with gsung's analysis of the article is that most of the featured people were renters, not owners.

"Consider the unfortunate story of Rob Paladino. Three years ago, he rented a one-bedroom pied-�-terre on the fifth floor of a new apartment building in the garment district. For $3,800 a month, he got a generous 600-square-foot patio, built above four floors of retail space on top of the building%u2019s first setback.
"It was a big feature, and I really believed it was worth the extra few hundred dollars a month," said Mr. Paladino, a single 52-year-old digital media entrepreneur who looked forward to entertaining friends outdoors."

Note: this guy RENTED. Didn't own. Only had to put up with one year of suicidal cats and flying cigarette butts. While a terrible story, this article does not prove in any way that buying is inferior to renting. I realize that reading posted articles is unpopular on this board, but come ON. A little critical thinking, please?

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Response by pchikosh
about 16 years ago
Posts: 10
Member since: Dec 2009

I don't know what you are talking about now, but you are a little too colorful to be mistreating people being evicted.

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Response by hotproperty
about 16 years ago
Posts: 277
Member since: Nov 2008

I think the point is that you can easily leave a problem rental but you cannot easily leave if you own the problem apartment.

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Response by evnyc
about 16 years ago
Posts: 1844
Member since: Aug 2008

Hotproperty, that would be an excellent point - IF the post had been framed that way. It was not.

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Response by kylewest
about 16 years ago
Posts: 4455
Member since: Aug 2007

Steve, you have so overstated,misinterpreted,and distorted the "Pullman decision" over the years it isn't worth commenting anymore. Last time you gave legal advice I recall you ridiculously insisting that coop shares couldn't be owned in NYC as tenants in common. You're inability to refrain from offering legal opinions despite no legal training whatsoever is shameful.

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Response by stevejhx
about 16 years ago
Posts: 12656
Member since: Feb 2008

kyle, first, I don't offer legal advice.

Second, co-op shares cannot be owned as a tenancy in common because tenancy in common is a real property concept and co-op shares are personal property. Certainly two names can be on the proprietary lease, but that is not a tenancy in common.

I haven't oversimplified anything: I have posted the rules on eviction from co-ops above. It is from authoritative sources (not from me). You posted an opinion. Your opinion was wrong. Rather than ascribe to me legal advice that I don't give, just admit that you're wrong.

I have never "overstated, misinterpreted,and distorted the "Pullman decision" over the years" because I disagree with it and think it's stupid. But it is the law.

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Response by kylewest
about 16 years ago
Posts: 4455
Member since: Aug 2007

You remain wrong about people being able to own a coop as tenants in common. Any RE attorney on here will agree with me.

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Response by beatyerputz
about 16 years ago
Posts: 330
Member since: Aug 2008

"Buy a $1MM co-op, put 20% down = $200,000. Lose 90% of equity means equity down to $20K and apartment down to $820K, so the apartment is down 18%."

Except he put down more than 20%. Don't know exactly how much.

"Ironically, if you've lost your job, blown through your savings, and can't afford your apartment, you're in a much better position as an OWNER (at least now, with all the banks being overwhelmed with foreclosures), because the process of being forced out of an apartment you own but have stopped paying the mortgage is much, much longer than being forced out of an apartment on which you've stopped paying rent."

Except that, as owner, you've lost your savings. I don't view that as much of an advantage.

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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009

never bother matt with facts.

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Response by evnyc
about 16 years ago
Posts: 1844
Member since: Aug 2008

Yah, cc. Matt is immune to factuality.

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Response by DebGovert
about 16 years ago
Posts: 22
Member since: May 2009

People this is no more a buying problem than a renting problem. It's New York City life.

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Response by 30yrs_RE_20_in_REO
about 16 years ago
Posts: 9878
Member since: Mar 2009

"Not in a co-op it's not. It's the exact same procedure as eviction: call the sheriff. "

Sheriffs play exactly NO PART of any eviction in NYC; perhaps you meant City Marshall? But even with Marshalls, all they do is EXECUTE evictions AFTER an Order of Eviction is issued in Landlord Tenant Court or and Order of Ejectment in State Supreme.

"Cant be evicted from a co-op unless you dont pay maintenance which is a fraction of the rent in a rental."

Nope. The fastest of any of the things which can be done is a Coop Foreclosure by the Lender (faster than any eviction or a Judicial Foreclosure on Real Estate). Then the Lender does a Holdover eviction.

"Well, kylewest, you would be wrong:

http://www.cooperator.com/articles/871/1/Push-and-Pullman/Page1.html

The Pullman decision grants co-ops the right to evict tenants under the business judgment rule, without judicial review. There is no winding through the courts for co-ops. Condominiums are another matter, as there's no lease."

And exactly how long did it take that Coop to evict Mr.Pullman? If I recall correctly, it was about 3 years. Yup, much faster than a rental tenant... NOT!!!!!!! Also, Pullman IS NOT USED in a non-payment, ever. It is used for non-monetary evictions when you have a nuisance tenant. And in a lot of buildings, part of the process is having a special meeting of all the shareholders and getting a super-majority of them to vote for it. Not exactly a quicky.

"Frequently, the co-operative corporation has a right of first refusal Right of First Refusal

In general, the right of a person or company to purchase something before the offering is made available to others.

"http://www.thefreelibrary.com/Borrower+beware:+Most+co-op+foreclosures+get+fast-tracked-a065227644"

snippet: "Frequently, the co-operative corporation has a right of first refusal Right of First Refusal on the shares, which means that they have the first right to buy the shares from the lender, usually at book value. This type of restriction has been upheld by the courts."

This article from the "Free Library" is worth what you paid for it.

"Boards nip problems in the bud, won't tolerate b.s. from bad neighbors,"

Not in lots of buildings. There have been myriad instances of noise complaints and other nuisances where Boards have opted "not to get in the middle of things" between neighbors. And even if they want to, they can't just waive their magic wands and have stuff happen, even though they think they can and their attorneys tell them they can do whatever they want.

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Response by hfscomm1
about 16 years ago
Posts: 1590
Member since: Oct 2009

columbiacounty
about 4 hours ago
ignore this person
report abuse
hfscomm1---shove it.

Very good, remember to use nasty terms but not curses. Your abundant curses, the f-word in particular, were deleted by streeteasy last week.

Anyway, reading the above, once again, I wasn't needed to degrade the quality of discourse on this tread - congratulations for doing that on your own, how many was that this Sunday?

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Response by somewhereelse
about 16 years ago
Posts: 7435
Member since: Oct 2009

> All these horror stories are from RENTERS.

Who were able to get out... often easily.

If you buy the place... whoops.

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Response by bjw2103
about 16 years ago
Posts: 6236
Member since: Jul 2007

Getting back to the op, are people actually agreeing with the premise? It's pretty laughable.

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