A few months ago I went into contract on an apartment, the board rejected my application before they even met with me. The seller was convinced the board rejected the sale due to price (it was at 2003-04 levels) so the seller sued the board. I stayed in contract during this time. The seller and board apparently will be settling this week, and that could mean I can actually move forward with the... [more]
A few months ago I went into contract on an apartment, the board rejected my application before they even met with me. The seller was convinced the board rejected the sale due to price (it was at 2003-04 levels) so the seller sued the board. I stayed in contract during this time. The seller and board apparently will be settling this week, and that could mean I can actually move forward with the sale.
The apartment needs work, floors, kitchen, bathroom. My concern is, if the board changes their mind, allows the sale to go through at the original price, will they punish me (the buyer) when I want to renovate?
I will have to do the board interview still so do I mention the reno's or deny that I want to do work? The reason the purchase price is so low is that the work really needs to be done. Helpful advice is welcome.
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Response by apt23
almost 16 years ago
Posts: 2041
Member since: Jul 2009
can't you make board approval of the list of renovations a contingency in your contract. why would you want to buy unless you were certain that you could make the apt comfortable. You could also walk away. There are numerous threads on this site about how coop boards can make your life a nightmare and you are already worried about it. life is very short. lying to the board at the outset does not sound like a good idea.
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Response by corozeng5
almost 16 years ago
Posts: 36
Member since: Nov 2009
I saw an article recently about this very subject although I don't remember where. It suggested that you go into the interview with a cost estimate as well as list of what you plan to do. The board will be able to look at your complete financial situation as part of the application process. Later when you need their approval, it will make the process much easier.
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Response by maly
almost 16 years ago
Posts: 1377
Member since: Jan 2009
I would be upfront about the renovations and what you have in mind. I don't even know why you would lie about it, unless you love conflict with aggrieved neighbors.
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Response by KeithB
almost 16 years ago
Posts: 976
Member since: Aug 2009
Of course don't lie. But the interview is not about renovating the apartment, 80% is about meeting you and if they are concerned about renovations they will bring it up. I don't feel this is something you need to bring up. All(most)will have a renovation package that you will fill out and submit for approval with copies of proper licenses, permits and insurance. I don't know of any coops that will commit to any conditional approval before you move in based on a conversation. You can have your broker inquire about the policy with the buildings managing agent and perhaps ask for a copy of the renovation package/application to review. it will give you guidelines on the hours work can be done, perhaps a time frame it needs to be completed by.Perhaps the owners or their broker will have some insight regarding the buildings history with dealing with shareholder renovations.
If you are not doing anything out of the usual, say installing new windows, a fireplace, making serious structural changes you will be fine.
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Response by memito
almost 16 years ago
Posts: 294
Member since: Nov 2007
uwsbuyer,
I sincerely hope that the coop doesn't somehow hold you accountable for the seller's lawsuit and somehow hold a grudge after you move in.
I personally would be very reluctant to move into a coop after such legal hell broke loose, but hopefully they are rational people and won't try to take out their frustrations on you.
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Response by SMattingly
almost 16 years ago
Posts: 100
Member since: Oct 2007
The board has been fighting with your seller, not with you, so the chances are very good that you will start with a clean slate. However, misleading them about your renovation plans is probably the quickest way to make them fight with you.
Probably a good idea for your lawyer to check in with seller's lawyer to see what protections can be baked into the settlement agreement. Although you are not a party to the lawsuit, you probably have the right by now to walk away from your contract so the seller should be motivated to help you out. Perhaps they can agree to the board making an exception and reviewing (approving) your renovation plans before you buy....
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Response by Bernie123
almost 16 years ago
Posts: 281
Member since: Apr 2009
If it is indeed the (low) price that led to your rejection and the decision is reversed I would think the board would WANT you to do renovations - AND take before and after photos. This way their apartments wouldn't be de-valued via a comp to yours. No?
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Response by uwsbuyer229
almost 16 years ago
Posts: 30
Member since: May 2008
Bernie- yes I'd think they'd want me to renovate too. If I get to interview I don't think I'll bring up the renovations but if they ask, I am going to be honest. I'd rather lose the apartment by being honest than get it and have to deal with hell in order to get approval to renovate.
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Response by manhattanfox
almost 16 years ago
Posts: 1275
Member since: Sep 2007
My gut says you should have no issues. if the board accepts you -- then you are in. They welcome new owners and renovations (upgrades the overall building). They also get fees. Be open about the work. Imagine how they felt about the former owners living in a state a dilaidation that requires so much work --
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Response by w67thstreet
almost 16 years ago
Posts: 9003
Member since: Dec 2008
Flmao. Let's get this straight. You got a 'great' deal at 03'/04' price several months ago with your broker yelling grt it bf bonus season. You took the plunge, it takes board and the rest of the world bonus is mostly non- cash and trades are mkt at 03/04 price making your great deal just plain market today.
FYI, yiu have every right to extract a pound of flesh from someone. Id go for the seller then the seller broker and then your broker. Fwiw. If it was me on the sell side, I would have pre-empted a bad situation with the most crictical person in the process, you, by kicking in whatever cost you endured for the delay. Months * your rent, and some tulips.
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Response by kylewest
almost 16 years ago
Posts: 4455
Member since: Aug 2007
I'd be honest. You don't want the place if you can't reno it and this already isn't a cookie cutter type deal. If the board wants prices up, then one way to do that is to do all possible to ensure apt's being listed are in great condition garnering top dollar. It is in their interest, as others point out here, to get your place reno'd. It makes no sense to deny you that.
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Response by raddoc
almost 16 years ago
Posts: 166
Member since: Jun 2008
You still want this place AND you think this board is going to be any easier on you when you go to sell because.......
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Response by dmag2020
almost 16 years ago
Posts: 430
Member since: Feb 2007
Possibly the most valuable asset in your life is about to be controlled by an entity known to be irrational to the point that you may need to sue them in order to get them to be reasonable, and you are going to VOLUNTARILY enter into this situation so that you can have the opportunity to buy an un-renovated apartment at 04 prices (read: not a good deal anymore) because why? I think you should be asking yourself how can you ensure that you don't get approved by this board.
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Response by dwell
almost 16 years ago
Posts: 2341
Member since: Jul 2008
"how can you ensure that you don't get approved by this board"
there's lotsa posts on that: burp, pass wind, don't bathe, lite a cig or a dubbie
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Response by inonada
almost 16 years ago
Posts: 7952
Member since: Oct 2008
Yeah, uh putting all else aside on whether this is a good idea or not in terms of moving forward, what exactly do you gain from not being proactive about the fact you want to renovate? You are obviously not getting a "steal" given the amount of effort the seller had to go through to secure this price, no?
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Response by dwell
almost 16 years ago
Posts: 2341
Member since: Jul 2008
During the interview, address the Bd as "yooz people" & then cuss
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Response by romary
almost 16 years ago
Posts: 443
Member since: Aug 2008
could being the operative word. interesting but concur with raddoc and dmag - maybe best to move on. or bring Snooki to the interview - could be the shortest money you've ever spent.
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can't you make board approval of the list of renovations a contingency in your contract. why would you want to buy unless you were certain that you could make the apt comfortable. You could also walk away. There are numerous threads on this site about how coop boards can make your life a nightmare and you are already worried about it. life is very short. lying to the board at the outset does not sound like a good idea.
I saw an article recently about this very subject although I don't remember where. It suggested that you go into the interview with a cost estimate as well as list of what you plan to do. The board will be able to look at your complete financial situation as part of the application process. Later when you need their approval, it will make the process much easier.
I would be upfront about the renovations and what you have in mind. I don't even know why you would lie about it, unless you love conflict with aggrieved neighbors.
Of course don't lie. But the interview is not about renovating the apartment, 80% is about meeting you and if they are concerned about renovations they will bring it up. I don't feel this is something you need to bring up. All(most)will have a renovation package that you will fill out and submit for approval with copies of proper licenses, permits and insurance. I don't know of any coops that will commit to any conditional approval before you move in based on a conversation. You can have your broker inquire about the policy with the buildings managing agent and perhaps ask for a copy of the renovation package/application to review. it will give you guidelines on the hours work can be done, perhaps a time frame it needs to be completed by.Perhaps the owners or their broker will have some insight regarding the buildings history with dealing with shareholder renovations.
If you are not doing anything out of the usual, say installing new windows, a fireplace, making serious structural changes you will be fine.
uwsbuyer,
I sincerely hope that the coop doesn't somehow hold you accountable for the seller's lawsuit and somehow hold a grudge after you move in.
I personally would be very reluctant to move into a coop after such legal hell broke loose, but hopefully they are rational people and won't try to take out their frustrations on you.
The board has been fighting with your seller, not with you, so the chances are very good that you will start with a clean slate. However, misleading them about your renovation plans is probably the quickest way to make them fight with you.
Probably a good idea for your lawyer to check in with seller's lawyer to see what protections can be baked into the settlement agreement. Although you are not a party to the lawsuit, you probably have the right by now to walk away from your contract so the seller should be motivated to help you out. Perhaps they can agree to the board making an exception and reviewing (approving) your renovation plans before you buy....
If it is indeed the (low) price that led to your rejection and the decision is reversed I would think the board would WANT you to do renovations - AND take before and after photos. This way their apartments wouldn't be de-valued via a comp to yours. No?
Bernie- yes I'd think they'd want me to renovate too. If I get to interview I don't think I'll bring up the renovations but if they ask, I am going to be honest. I'd rather lose the apartment by being honest than get it and have to deal with hell in order to get approval to renovate.
My gut says you should have no issues. if the board accepts you -- then you are in. They welcome new owners and renovations (upgrades the overall building). They also get fees. Be open about the work. Imagine how they felt about the former owners living in a state a dilaidation that requires so much work --
Flmao. Let's get this straight. You got a 'great' deal at 03'/04' price several months ago with your broker yelling grt it bf bonus season. You took the plunge, it takes board and the rest of the world bonus is mostly non- cash and trades are mkt at 03/04 price making your great deal just plain market today.
FYI, yiu have every right to extract a pound of flesh from someone. Id go for the seller then the seller broker and then your broker. Fwiw. If it was me on the sell side, I would have pre-empted a bad situation with the most crictical person in the process, you, by kicking in whatever cost you endured for the delay. Months * your rent, and some tulips.
I'd be honest. You don't want the place if you can't reno it and this already isn't a cookie cutter type deal. If the board wants prices up, then one way to do that is to do all possible to ensure apt's being listed are in great condition garnering top dollar. It is in their interest, as others point out here, to get your place reno'd. It makes no sense to deny you that.
You still want this place AND you think this board is going to be any easier on you when you go to sell because.......
Possibly the most valuable asset in your life is about to be controlled by an entity known to be irrational to the point that you may need to sue them in order to get them to be reasonable, and you are going to VOLUNTARILY enter into this situation so that you can have the opportunity to buy an un-renovated apartment at 04 prices (read: not a good deal anymore) because why? I think you should be asking yourself how can you ensure that you don't get approved by this board.
"how can you ensure that you don't get approved by this board"
there's lotsa posts on that: burp, pass wind, don't bathe, lite a cig or a dubbie
Yeah, uh putting all else aside on whether this is a good idea or not in terms of moving forward, what exactly do you gain from not being proactive about the fact you want to renovate? You are obviously not getting a "steal" given the amount of effort the seller had to go through to secure this price, no?
During the interview, address the Bd as "yooz people" & then cuss
could being the operative word. interesting but concur with raddoc and dmag - maybe best to move on. or bring Snooki to the interview - could be the shortest money you've ever spent.
add memito's advice to my concurrence.