Condo Boards Can Veto a Sale?

I suspect it is a mistake on the part of NYTimes. Condos have "right of first refusal" which is rarely exercised. If you feel strongly about this point, you can write to them and see if they make a correction or justify their statement.

I am not positive but I believe that condos can set by-laws/regulations and if the residents agree to make a certain regulation and then somone agrees to buy the apartment being aware of that regulation then they can be held to it. You are buying a condo but you are also agreeing to the building's rules - much like buying a home in a historic district or a gated community.

The real difference with a condo and a co-op is that they can't just go changing the rules on you in a condo. The board has a lot more control in a co-op and your voice is only as loud as your share/shares since it is run as a corporation. So, at the end of the day, other people can make decisions for you in a co-op. i.e. if you wanted to rent a place in a condo and there was no rule against it, no one can really stop you. If the board in a co-op decides that they don't want anyone renting your place, then they can most likely stop you from renting it.

net-net, you do have a lot more flexibility with a Condo (and that's why many people prefer them to co-ops) but I think that it is a myth that condos have no restrictions.

interesting article on this subject:
http://www.cooperator.com/articles/1170/1/More-Power-to-Condo-Boards/Page1.html

IDK, my opinion is that this is America, and private property is sacred. If I have real property--and a condo is legally considered be real property--I should be able to sell it for $2 or $2,000,000. It's a decision between the buyer and seller. After that price has been agreed upon, if the condo board has first right of approval, fine ... but vetoing a sale is something that only a co-op should be able to do, in my opinion.

I don't disagree with you Sticky, I don't want a board telling me what price I can get for my apartment either. I'm not sure what IDK means, but your original question was in reference to the article that you posted. I was just tyring to see what I could find to see whether or not it was somehting that you/me/others should be concerned about.

It seems like it is not impossible for a condo board to get in the way of your sale, although it does appear to be more difficult than with a co-op. While I personally agree with your opinion...condo boards will use the argument that while you own your individual unit, you all have a common interest in the building - unlike when you buy a plot of land, in which case you share no common interest and the town provides the road directly to your house.

Anyhow, I would recommend looking very carefully at a condo's by-laws before making a decision. Some are stricter than others and unlike a co-op, it is very hard for them to go changing the rules on you.

IDK = I Don't Know

Oh ... so the ability of a condo board to veto a sale would be spelled out in the by-laws? Meaning that if such a provision is not spelt out from the outset in plain black & white, the board can't interfere with your sale?

I guess I want to know what the "default" condo rule is. Like, as I understand things, ALL condos in NYC have the "first right of refusal." But as for this vetoing a purchase, that would have to be an exception to the rule that you agree to when you purchase in the building? What if such a provision is added to the by-laws AFTER you purchase in the building?

I am not sure about the legality of it. The article that I pasted seemed to suggest that it is possible and has happened under extreme circumstances. I think that the reality is that it would be very hard for a condo board to veto the sale of your apartment unless it was clearly written into the bylaws before you purchased or if there was a very extreme circumstance and they were willing to take you to court over it. Unlike a co-op where the baord can essentially choose not to sell your apartment becasue they don't like the person that you are selling it to and they don't even need to go to court to do that.

sorry, I meant a co-op board can choose not to "let" you sell.

Anyhow, I think that it would be next to impossible for a condo board to stop you from selling your apartment based soley on the price that you were selling it for.