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can you elaborate about the unfair business practices you suspect the member was/is engaged in?
I tried to purchase a cooperative apartment in NYC. The contract was signed about 1 month ago. It is a cash purchase without mortgage. The seller called my lawyer the next day after the contract was signed and express his regret of signing the contract and requested for the cancellation of the contract. I disagreed and the proceeded with the application for the approval from the broad of the cooperative. After submitting all the requested financial documents, the broad requested for a security deposit with the amount equals to 4 years of common charges and we agreed. Therefore, we had an interview with the broad. ... to be continue.
During the interview, all of the questions were about our financial situation. About a week after the interview, our application was declined. The reason I believe one of the broad members has committed unfair business practices because of the followings:
1. Based on the financial documents that we submitted, not only our real estate agent and our lawyer, but the seller lawyer agreed that our financial status should be strong enough that they don't see the rejection could be financially related.
2. We also agreed to put down security deposit with amount equals to 4 years of common charges. According to the agents, this is very rare, most of the time when the broad worry about financial status of the applicant, they will require 2 years of common charges.
3. The seller wants to get out of the contract.
4. One of the members of the broad has an office on the same floor as the seller for more than 6 years and we believe that the member is doing a favor to the seller to get him out of the contract.
Is it true that if we bring the broad to the court we should at least getting to know the reason for the rejection? Thanks!
If it turns out that the reason for the rejection is financially related, will we be able to get the contract executed if the court is convinced that we are financially strong enough to own that apartment?
Hello: Another expert here and I'll try to assist. The Coop is a private corporation and a purchaser of a unit is actually buying a share of stock in the corporation. As a private corporation, its Board of Directors may limit and restrict who may buy its shares. They can reject for just about any reason that does not violate federal or NY state law. Such restriction and screening would not be considered a 'business practice' - fair or unfair. A suit based upon your financial qualifications would not be likely to succeed in court.
I know this is not the Answer you wanted to hear. Hopefully the Board will change its decision and approve the sale. If it does, and the seller backs out on it, then you will have grounds to take the matter to court.
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Thank you for the information.Realistically speaking it is very difficult to impossible to sue boards of coops unless you can patently demonstrate that you were discriminated based on sex, sexual orientation, race, national origin or religion. The law (especially in NY where there are a lot of coops) gives boards a VERY wide latitude in making their business decisions.Also keep in mind that a law suite, in addition to being very expensive, would potentially hinge on one board member admitting to acting on the request of his/her floor neighbor. It would be virtually impossible to compel the board member to testify truthfully. And to top it all, whether they genuinely were concerned with your financial situation or not, the fact that they created a paper trail where they express concern about your financial ability (again regardless of whether this is justifiable or not) in effect immunizes them as they will be able to point to this as being the basis for the rejection.Here's what you can do:1) From what you have described this looks like the work of an experienced board that knew how to properly lay the foundation for the rejection, so before commencing a law suit I would hire a private investigator to and find out if there were prior similar instances with this seller or other board shenanigans in the building.2) I would have the PI investigate whether the seller tipped off the board and requested to reject you. In my mind this would be a much stronger claim that you may have against the seller as the seller has a contractual duty to deal fairly with you whereas the board does not have such contractual duty because they are not in privily with you. So if you can discover that the seller actively worked to sabotage the deal then you would have a cause of action against the seller and would then be able to sue for damages.
Thank you for your patrongae
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Do the broad have to disclose their reason for a rejection in a law suite?
If the coop broad is not required to provide the reason for a rejection in a law suite, I don't see how a coop broad will be found guilty under any circumstances no matter what they had done. This is kind of against my common sense. On the other hand, if the reason for the rejection can be proven to be invalid in the court, why can the court enforce the execution of a contract?
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