HABITAT
Subscribe for Daily Updates!
Our coop sponsor is in the process of securing a bank loan using the unsold shares as security. Is this a warning sign of somthing else to come? Would this make it easier for him to sell his interest to another party as 'holder of unsold shares'?
Join the Conversation Comments (3)
Hi,
Wow. Unless the sponsor is spending the funds in the building, this is a huge red flag. Our sponsor went bankrupt some years ago and what a mess that was (the co-op eventually received the unsold shares). You need a co-op/condo lawyer and fast.
First, remember the board has the final approval of whether of loans secured by the building's shares so the board can nix any loan against unsold shares. Second, now is the time for the board to buy the sponsor's unsold shares--by getting its own loan if it has to.
Third, Use the board's leverage to get a very good price for the shares.
Fourth, be prepared for tough negotiations but the board has the upper hand.
Fifth, Yes, get a lawyer but not the usual suspects on board of NY Co-operative Council: they usually represent sponsors or want to someday because boards hire and fire attorneys, are slow pays, argue abt fees, have trouble making decisions, etc.
You need to listen to Rita - she has been there and saved our co-op, where I am President now.
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!
Ask your Co-op attorney. If the attorney is hired or paid by your Sponsor, have the board engage another attorney so the board becomes her/his client and not the sponsor.
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.