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I own a cooperative unit in Brooklyn. A year ago, the original sponsor of the building sold his outstanding shares (51%), which he held on to since the building turned into a coop in the 1980's, to a single buyer. The buyer has assumed the role of "sponsor".
My question is this: Are sponsor rights transferable? Did this sale require review or approval from the AG's office? There are no amendments on file with the NY REFB.
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This is a difficult question whose answer depends on the precise circumstances. Different courts have reached different opinions over the years. Google the case law on "holder of unsold shares," which is the advantageous position that sponsors want to preserve. A couple of observations (note that I AM NOT A LAWYER):
1. If the new owner lives in an apartment for even a day, the owner is no longer a holder of unsold shares for that apartment.
2. The Offering Plan is given precedence in most court decisions, even if the coop's governing docs say something else.
Check out Sassi-Lehner v. Charlton Tenants Corp. for some insights. Here's a good summary: https://www.lawpipe.com/New%20York/Sassi-Lehner_v_Charlton_Tenants_Corp.html
Again, you need to consult a lawyer on this. It's a very complex issue without a generic answer.
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