Selling a co-op building, can this be done?

you cant sell a corporation?

Who do they want to pay their maintenance? The previous owner that gifted the apts to them?

I would start legal action against them immediately. Before they were gifted the apartments, they paid rent. Now they pay zero and expect the other shareholders to carry their share of the expenses. Crazy and I doubt it will get anything but worse if not addressed. Guess you could cook their meals as well?

Yes, the co-op corporation's shareholders can vote to dissolve it. The co-op's governing documents will detail the terms, e.g. how much of a majority of votes.

Then it sells the building, distributes the net proceeds pro-rata to the shareholders (deducting arrears from those shareholders owing money,) and dissolves itself.

That's what a small rowhouse co-op on the site of 535 WEA did.

i agree. you cannot sell the coop. you can start foreclosure proceedings for unpaid maintenance. i think it's easier to get a coop owner out then a rent controlled or stabilized tenant.

Thanks for the responses! I figured we would have to dissolve the co-op before doing anything.

Hi nycin10011,

Your coop need not immediately dissolve. In fact, there are a series of steps that the corporation must take before doing anything that might terminate its existence. Recall that the coop is a corporation whose asset is the building. In order to dispose of that asset, the corporation must satisfy certain requirements.

We regularly give guidance on this sort of matter. Feel free to shoot me an email. If we can't help you, we can certainly suggest someone who can.
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Marco Santori is a lawyer in New York City, but he isn't your lawyer, and you should not rely on this post for legal advice. If you have any other questions, feel free to email at MSANTORI@NMLLPLAW.COM

@NYCin - why are you just serving the co-op owners in default notices and selling their apartments on teh open market?

What am I missing.. why would you sell the co-op just because a few people aren't paying their maintenance?

Where to find online info for how a co-op corporation may sell/liquidate the building for another use.
Eg.some occupants may have left and the remaining occupants cannot find new members to occupy the vacant rooms, so they decide to sell the facility.
Do they just sell and divide the 'profits'.
Probably controlled by the articles of incorporation... where to find a good example ?
Thank you.