Do lawsuits impede sales, or not?

Building size might be relevant to answer your question. In a small building, the cost of legal expenses are shared by a handful of people- so yes. I don't have large building experience so perhaps others can chime in.

Someone complaining has no impact as far as obtaining financing goes. However if there is on going litigation this will come up during both your attorney and banks due diligence. Some banks will be more difficult than others, first they will require a letter from the buildings managing agent or attorney stating what the worst case scenario for damages will be and if the buildings insurance will cover it. Some managing agents are hesitant to write such a letter they may send a vague answer to the question. Other banks will ask for the maximum amount of damages the buildings insurance policy will cover and take into account the type of lawsuit that is going on. We have experienced this and it has always been resolved with the bank, though with some additional hoops to jump through and an additional layer of aggravation for all involved.

Keith Burkhardt
The Burkhardt Group

Lawsuits are good. But remember avoid those wimpy lawyers into arbitration or the so called litigators who never see the inside of a courtroom because they are too scared, like the arbitrators. And don't even get me started with the mediators and diplomats.

I am only one datapoint, but I would avoid any building where there was pending litigation against either the sponsor or the board of directors involving building maintenance.
@gb - when are you going to share with us the particulars of your personal experience with litigation? It has obviously left its mark on you, and sharing can be therapeutic. Plus, I am guessing it is a pretty good story.

Does that excite you? You want to live litigation experience through me?

hear hear , what's the skinny gotham ???

No one wants to live anything through you, troll. She is just pointing out your obvious chip on your shoulder. We'd be interested in knowing some of the details that made you so bitter and nasty. As a case study, you understand?

It depends on the nature of the law suits and the extent of the legal fees.

There was an apartment I passed on because there were too many law suits against the Board and managing agent. It appeared that the Board started a number of frivolous law suits against a number of residents.. As a result, this Board racked up tons of legal bills. They lost the cases and had to pay out additional monies to the shareholder. (eg. They tried to terminate the lease of a shareholder for holding wild parties on the shareholders terrace and band practice within the apartment. They lost for 2 reasons. 1) The shareholder provided evidence that she was out of state working during this period and that no one was living in the apartment. 2) No apartment in the building had a terrace or roof deck. The others I checked on were equally as ridiculous.)

Bhurg, are you speaking for NYCNovice again? She can speak for herself and herself and herself.
Where is your husband, doesn't he need a half legal opinion?