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I recently purchased a co-op. One of the requirements was that I get $5 million in personal liability insurance. This rule was passed several years ago and it’s only being applied to new purchasers. Shareholders who purchased before the date this rule was put into effect only have to have $1 million in insurance. Is this legal?
Join the Conversation Comments (1)Thank you. I was advised that the Board cannot impose different financial requirements for different shareholders. I have not heard anything about a “grandfather” exception to the requirement that new purchasers carry more insurance than existing shareholders. I don’t know if any real estate attorneys follow three discussions, but I would be interested in hearing what they have to say.
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I am not a lawyer, but I believe it's known as "grandfathering". Unless there is imminent risk or danger, those shareholders who owned before the rule change was put into effect are entitled to follow the old regulation.
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