Can a Condo Make Buyers Pay a $1,500 Capital Contribution Charge?

Jan. 20, 2015 — A condo in Williamsburg, Brooklyn, has instituted a policy that requires buyers to pay $1,500 capital contribution charge. According to one of the condo's unit owners, "the bylaws do not give the board authority to require a capital contribution in this situation. In my view, it is essentially a flip tax." What if future boards decide to increase the fee? Is there a way to nip this in the bud? The unit owner reaches out to Ronda Kaysen in the latest "Ask Real Estate" column in The New York Times for some advice. Kaysen explains that the bylaws must give the board explicit permission to collect a capital contribution such as this $1,500 charge. If not, "then the board has certainly overstepped its boundaries" and essentially amended its bylaws — which it can only do if two-thirds of the unit owners vote in favor. Good news for the concerned unit-owner, right? Wrong. Kaysen adds that "the board could probably enforce the rule without a vote." And what if a buyer doesn't want to pay? Well, then, the board can block the sale. What are the odds you'll go to court over 1,500 bucks?