board application denied - low sale price

What neighborhood in Queens?

Not an expert at all but weren't boards left and right rejecting sales prices that were too low during the credit recession of 2008-2009?

The board may reject the proposed sale, as it diminishes the value of all the apartments in the building (or, more accurately, the values of shares in the corporation). Your contract contains a statement that the contract between you and the seller is contingent upon the board's approval of you and the contract terms, so yes, the co-op can keep the contract from being completed (if the contract doesn't, you need a better lawyer). If your application has been denied, it is unlikely they're going to invite you for an interview. Your broker should speak with the sellers broker who can maybe suss it out with the seller and the board to ensure that the board isn't mis-reading the sellers concession as a reduction in the price per share. If the board is holding to a particular price per share, you can either pay up, or walk.

Separately, why on earth would you not have market comps in front of you when you made your offer?

here you go, might not be the latest info but it gives you a good idea of what the board can do.

http://www.stroock.com/SiteFiles/Pub1152.pdf

Wanderer: Useful info, and well worth the time to read. Thanks!

Their's a limit to how low a seller can unload their apartment

In a nutshell, boards have complete power to reject with not much legal recourse on buyers/sellers end. They can not reject due to discrimination bias against a "protected class" i.e. race, religion etc. but burden of proof is on the applicant and/or sellers. they can reject because they don't like the color of finger nail polish buyers wife had at interview.

I inherited a co-op at Kennedy House 110-11 Queens Blvd.. In 2014. Did careful research and listed at fair market value based on recent sales, comparable conditions

The Board rejected two well qualified buyers, both had legitimate jobs, cash sale, ample resources and over 500K liquid assets even after they would have paid for the Co-op. My RE agent and I were baffled. I wrote two sets of diplomatic letters to the Board saying I understand they had an obligation to screen potential tenants, support prices etc.... can they please give me some guidance and indication of why the rejections or at least "what they were looking for in the next buyer".

(Each offer/ application/ rejection is a two-three month process, offers and counter offers, filing out apps, attorney fee's .... all to wait for a final rejection at the whim of The Board)

I got nil, no response what so ever ! All the while I was paying over $1700 a month in maintenance fee's on an empty apt. The building does not allow rentals, so I was forced to continue to cover maintenance form my own funds.

Finally, after paying out over 40k in maintenance third buyer was accepted early 2016. The kicker is we had to artificially INFLATE THE PRICE write in an $80K concession back to sellers (on an apprx $560K sale) . In effect this inflates the recorded selling price of recent sale units in the building (since the recorded sales price does not deduct the $80K concession). Happy board, mislead future potential buyers trying to consider comps/recent sales when making offers on upcoming "for sale" units.

I speculate the (entrenched) Board simply had no regard for an outgoing, out of state share holder . Absolutely no guidance , feedback , assistance to help neither me or my RE agent facilitate a sale.

It was a frustrating, long, drawn out ordeal. Never have I been "held hostage" for such a large sum of money that was rightfully mine (the Co Op was the bulk of the family estate) . My parents were residents of the building for over 20 years before they passed away, always paid fee's on time, never caused a problem in the building

What a disgrace and sad legacy the KH board left me & the other heirs with !

Not all Boards will be so callous, but KH was. Stay away, better yet "go condo"

boards can do this, but in general, I would be weary of the building.

As others have stated, boards can do almost anything with little recourse. However, if a board wants to keep prices artificially high, it is likely they will be difficult to deal with on other topics like rules or renovations. Well run buildings have inherent value, and brokers know it and they sell quickly. It allows situations like this to happen and people know why, so other sales aren't generally hurt. Does the building impose a flip tax or other assessments based on value? I would be nervous as this means you may have a harder time trying to sell it when you are ready to move on.