HABITAT
Subscribe for Daily Updates!
Is this the only unit that has been left without selling, i.e., the original sponsor only has one unit left?
Obviously, you are missing on common charges, any assessments that you may impose. If the sponsor continues to pay the tax on its own, then the government will not take it over.
Why don't you try to negotiate the unit from the sponsor at a rockbottom price and possibly use it as gathering room / gymnasium or other amenity for the residents if the association may be able to afford it?
AdC
The investor probably wants too much for the apartment. A home is worth only as much as a buyer will pay for it. So if the seller has dollar signs in his eyes, he may not see the reality that he's asking too much.
Can't the corp place a lien on the apt (if a condo)? Or, if it's in a co-op, and if the owner has a mortgage, you'll have no prob getting money from him.
A mortgage agreement typically (though not always) stipulates that if the borrower falls behind in the money he owes the co-op by an amount equal to three months' maintenance (or more), then the co-op is to inform the bank.
If you do so, the bank will send a letter to the borrower saying, "Pay the co-op what you owe in 30 days or the mortgage is due in full." Works every time.
The previous message just bounced out of my hands and so has no info.
Anyway, the building is a condo- too bad for these potential circumstances. Nothing has happened yet, it's just a feeling I have that it might/could eventually turn this way.
Liens? Then, place a lien on the property since the investor refuses to pay common charges and possibly assessments in the future.
Obviously, if this is an undesirable spot, the future buyer may be as undersirable as the spot. Why do I say that? Because no one in his/her right mind will see an undesirable spot as "having potential." In fact, years ago, I saw an apartment like you described that was in "foreclosure" and was being sold for nothing at the time. My impression was, "even if they pay me to live here I will refuse." Places such as you describe are okay for offices, a superintedent's or staff apartment or recreational area. If you rent it, it will be a transient type of tenancy which you do not wish to have.
NOW, for those who wish to convert a Co-op to CONDO, pay heed in this case. It's not easy to get rid of such problems with a condo except liens and/or hope that the investor default on his/her taxes and/or mortgage so that the government or the bank may take the property over and may clean the liens on the property.
AdC
Introduce yourself to other members of Board Talk! Log in below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.
Habitat u
visit habitat uHabitat U: learn about how to manage a building, and what you should know as a co-op or condo board member.
Archives
search
Search, by word or phrase, all magazine articles from January 2002 to present. You may print or email your results. Print subscribers receive free access to the Habitat Article Archive.
Ask the Experts
learn moreLearn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments
Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise
Subscribe
join nowGot elected? Are you on your co-op/condo board?
Then don’t miss a beat! Stories you can use to make your building better, keep it out of trouble, save money, enhance market value, and make your board life a whole lot easier!
Thanks for your email. This is not a sponsor unit, but one that an investor bought to flip, apparently.
Thank you for rating!
You have already rated this page, you can only rate it once!
Your rating has been changed, thanks for rating!
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.