Impossible Coop sale in the outer boroughs

Your mother knew what she was getting into when she bought in the '80s. It's not the sponsor's responsibility to help you get "your" money out of it; it never was YOUR money. If owning the apartment is such a burden, I'm sure you'll have no problem giving it away to someone who'd love it.

Matt, you're an absolute ass.

I agree with Aboutready.
https://www.youtube.com/watch?v=Pn0WdJx-Wkw

*yawn*

Who is more tired today, NYCMatt, or Aboutready?

A cash buyer will buy the apartment at the right price. The right price may be 30-50% of what a comparable building with a clean bill of health will trade for, depending on the rest of the financials. In an extreme situation, e.g., the sponsor apartments are rent-controlled and cash-flow negative and/or the sponsor is deficient on maintenance, then the value could be even less.

This apartment may be more valuable to you as a rental. If it's a real headache and you want to get rid of it, period, I think you'll have to price it for an investor who can make a good return on the rent while waiting out the sponsor in the hopes of an eventual big payday.

Thanks lad what you say makes sense. Do you think I should use a broker or try to sell it myself ?

N YCMatt My mother was in her early 70's when she purchased the apartment and had very little if any background in buying real estate. Her older sister lived in the neighborhood and she moved so they could be closer to each other in their elder years. I've made a small amount of money annually since she passed away but I don't want to own rental property. I was wondering what legal requirements a sponsor has to make a good faith effort to sell their units.

Not sure if this ruling held:
http://www.nytimes.com/2001/08/26/realestate/your-home-court-rules-sponsors-must-sell.html

First of all, Chuck I don't think you want to launch a lawsuit. Somebody who doesn't even want to be a landlord anymore probably does not want to spend time and money on legal proceedings.

Second I don't think NYCMatt is an ass, he is making a point worth remembering.

There are many cash buyers around, but most want something they can rent right away. That's even more important than price.

Here's what I would do: I would find out if a new owner will also be allowed to rent immediately. In some buildings nobody cares, no prob, it's done all the time, that's part of your problem it sounds like, but you might as well turn it to your advantage.

The problem isn't selling it yourself. The problem is screening a buyer so you don't waste time with a board turn down, or with somebody who doesn't actually have the money after all. It's really hard for non-real estate agents to screen well--in fact it's hard for real estate agents with experience to do this--so if I were you I would hire an agent.

I would find an agent who also works with investors or small developers, somebody who already has an advertising account that reaches investors. They are several of these. If the agent doesn't know what you're talking about, maybe move on. As a first pass look for an agent who has sold mixed use properties.

Good luck, this is a great time to sell, I still get emails from people looking for small scale investment properties so I know those people are out there.

NYCMatt is absolutely correct. My mother's building was converted to a cooperative in the late 80's. I ready over the prospectus and it was an absolute fraud through and through. They listed all sorts of amenities and staff that hadn't been in the place for the 40 years she had been there. There was no provision for the sponsor to sell his apartments. The owner of the building decided to do the conversion because most of his tenants were rent controlled and very elderly. He also planted new tenants who were given "incentives" to harass rent controlled tenants (eg. giving them a newly renovated apartment) and vote for the conversion. I met with many of the elderly people and went over the prospectus line by line and suggested they call the AG's Office. Some bought anyway and 25 years later their kids still can't get rid of the apartment.

how about an address so if someone is interested they can contact you

Chuck:

1. New York's highest court ruled in 2002 in 211 West 232nd Street Owners v. Jennifer Realty,
98 NY2d 144, 152-153, that Coop sponsors are under an affirmative and mandatory duty to
sell enough apartments to make their Coops viable and eligible for bank financing

2. your Coop can enforce that duty judicially
3. there are o exceptions to that ruling in today's real estate market

Regarding the Jennifer Realty case. Here's a link to a thorough explanation: http://cooperator.com/articles/745/1/The-Jennifer-Realty-Case/Page1.html

It may be of no benefit, however, to our friend Chuck.

"For all of its potentially sweeping implications, the Jennifer decision is carefully limited."

"The court expressly did not address the issue of whether the sponsor impliedly promised to sell all of its unsold shares, holding only that "at the very least," the offering plan was a contract that obligated the sponsor to sell sufficient shares to create a "fully viable cooperative," and that by retaining a majority of the shares of the co-op, the sponsor had defeated the purpose of the contract." (Let's not forget that the sponsor did not enter into a contract with CHUCK, he entered it with his mother, who is now deceased. That could complicate things greatly.)

And finally, "There is no current statute or court decision which defines a "fully viable cooperative," and the Court of Appeals did not undertake to do so. "

NYCMatt:

To my recollection some Coops have filed lawsuits and successfully used Jennifer
Realty to force Sponsors to sell enough apartments so that the Coop and buyers
of its apartments could qualify for conventional financing.