have a purchase agreement from 4 months ago on a 1BR coop in riverdale. our bank is requiring 2006 audited financials of coop as condition of closing. we're currently occupying coop because we had to relocate for jobs in late august, and seller agreed to let us in early (essentially, pay rent until we close). managing agent for coop continues to stall and deflect us, seller, coop board, and... [more]
have a purchase agreement from 4 months ago on a 1BR coop in riverdale. our bank is requiring 2006 audited financials of coop as condition of closing. we're currently occupying coop because we had to relocate for jobs in late august, and seller agreed to let us in early (essentially, pay rent until we close). managing agent for coop continues to stall and deflect us, seller, coop board, and attorneys on 2006 audited financials. therefore, we can't close and there seems to be no end in sight. anyone ever consider legal action to go after the managing agent who doesn't have the 2006 financials completed in a a timely manner (a CPA ought to knock out the financials in a few hours for a 45-unit coop that has had no significant changes in years). this has the potential to bust the deal, which would be an undue burden on all parties (except, of course, the managing agent). just curious.
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Response by spunky
over 18 years ago
Posts: 1627
Member since: Jan 2007
How aggressive is your lawyer? Is your lawyer a real estate attorney. Once again how agressive is your lawyer?
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Response by rickpeltier
over 18 years ago
Posts: 4
Member since: Apr 2007
i'm not sure how to gauge aggressiveness in our attorney (who is a RE attny, btw). i'd say if i ask her to go after them, she will. just surprising to us managing agent is so sloppy and slow - only took them 3 weeks to fax requested conditions (except 2006 financials) to our bank. not a lot of turnover in the building, so in the past, it wasn't a big deal to coop board.
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Response by spunky
over 18 years ago
Posts: 1627
Member since: Jan 2007
I'm not sure if that's something you should have to ask an attorney to do. Sounds like your lawyer is basically sitting back on this one and leaving it up to her client to decide what to do. Me, personally I would try to get another lawyer who's not afraid to take this bull by the horn and get this done without the prodding from his/her client.That's just my opinion.
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Response by aifamm
over 18 years ago
Posts: 483
Member since: Sep 2007
I would call that person literally every day until they got sick of your messages. Squeaky wheel gets the grease. Maybe they are doing shady stuff and they need to clean it up. hehe
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Response by uptowngal
over 18 years ago
Posts: 631
Member since: Sep 2006
Prior to signing the contract, what finanicials did your atty look at as part of the due dilligence? Sept is awfully late for a year-end statement to be ready. has the building been late in previous years? have you aske the seller?
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Response by alanhart
over 18 years ago
Posts: 12397
Member since: Feb 2007
The coop board should have a direct, independent relationship with the accountant -- not only through the managing agent. They (the board Treasurer or Secretary) should get an answer directly from the accountant, not sit around getting deflected by the management co.
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Response by rickpeltier
over 18 years ago
Posts: 4
Member since: Apr 2007
we got '04 and '05 financials for review (which, incidentally, were filed in november for each year) - in my OP, we went into contract in may, thus incomplete 2006 not entirely unexpected. nothing unusual in 04/05 financials or minutes - no major bldg reno., no shareholder disputes - a pretty boring coop, frankly (though a nice place to live). but given the current mortgage fiascoes out there, our bank is being pretty cautious, despite excellent credit, debt-to-income, and cash in hand. unfortunately, we have no legal standing to force the managing agent to do their job (e.g. financials) since we don't own an apartment yet, but it is clearly causing us financial harm (not to mention stress galore). i've been calling and emailing 3-4 times per week. usually get deflected to voicemail by the front office administrative assistant.
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Response by alanhart
over 18 years ago
Posts: 12397
Member since: Feb 2007
SELLER should be forcing the board's hand.
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Response by spunky
over 18 years ago
Posts: 1627
Member since: Jan 2007
sellers attorney and buyers attorney both sleeping at the wheel on this one.
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Response by NYC_Coop
over 18 years ago
Posts: 9
Member since: Aug 2007
Alanhart is correct. When the Managing Agent is not getting the job done (which seems to be a common problem everywhere), either myself or the Board Treasurer calls our lawyer or the accountant directly. However, financials do seem to drag even at my building (and so does the annual budget). I admit we sometimes forget we don't have the financials in hand until someone asks for them. The Sponsor, however, usually needs those financials to do amendments to the offering plan, so they are usually proactive in making sure they are delivered in a timely manner. If the Sponsor has a salesmen on premises who sells Sponsor-owned apartments, maybe that person has a copy of the financials (or a preliminary draft).
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How aggressive is your lawyer? Is your lawyer a real estate attorney. Once again how agressive is your lawyer?
i'm not sure how to gauge aggressiveness in our attorney (who is a RE attny, btw). i'd say if i ask her to go after them, she will. just surprising to us managing agent is so sloppy and slow - only took them 3 weeks to fax requested conditions (except 2006 financials) to our bank. not a lot of turnover in the building, so in the past, it wasn't a big deal to coop board.
I'm not sure if that's something you should have to ask an attorney to do. Sounds like your lawyer is basically sitting back on this one and leaving it up to her client to decide what to do. Me, personally I would try to get another lawyer who's not afraid to take this bull by the horn and get this done without the prodding from his/her client.That's just my opinion.
I would call that person literally every day until they got sick of your messages. Squeaky wheel gets the grease. Maybe they are doing shady stuff and they need to clean it up. hehe
Prior to signing the contract, what finanicials did your atty look at as part of the due dilligence? Sept is awfully late for a year-end statement to be ready. has the building been late in previous years? have you aske the seller?
The coop board should have a direct, independent relationship with the accountant -- not only through the managing agent. They (the board Treasurer or Secretary) should get an answer directly from the accountant, not sit around getting deflected by the management co.
we got '04 and '05 financials for review (which, incidentally, were filed in november for each year) - in my OP, we went into contract in may, thus incomplete 2006 not entirely unexpected. nothing unusual in 04/05 financials or minutes - no major bldg reno., no shareholder disputes - a pretty boring coop, frankly (though a nice place to live). but given the current mortgage fiascoes out there, our bank is being pretty cautious, despite excellent credit, debt-to-income, and cash in hand. unfortunately, we have no legal standing to force the managing agent to do their job (e.g. financials) since we don't own an apartment yet, but it is clearly causing us financial harm (not to mention stress galore). i've been calling and emailing 3-4 times per week. usually get deflected to voicemail by the front office administrative assistant.
SELLER should be forcing the board's hand.
sellers attorney and buyers attorney both sleeping at the wheel on this one.
Alanhart is correct. When the Managing Agent is not getting the job done (which seems to be a common problem everywhere), either myself or the Board Treasurer calls our lawyer or the accountant directly. However, financials do seem to drag even at my building (and so does the annual budget). I admit we sometimes forget we don't have the financials in hand until someone asks for them. The Sponsor, however, usually needs those financials to do amendments to the offering plan, so they are usually proactive in making sure they are delivered in a timely manner. If the Sponsor has a salesmen on premises who sells Sponsor-owned apartments, maybe that person has a copy of the financials (or a preliminary draft).