I suggest that you get a copy of the your Rules & Regulations to see if they can in put charges such as repairs caused by a unit or any legal fees in regards to for example overdue accounts, by-law violations requiring legal advice or assistance etc. We have a clause which states that we can. They may as well.

what do we do?

Fortunately, in most cases this is illegal.
If you have a clauses allowing unfounded charges to be imposed. in your prop lease then that leaves things open to abuse by board members. Bad idea.
Our board habitually abuses it then wastes money in legal fees with shareholders who actually know their rights.

I never said that the clause allowed for "unfounded charges". What the clause allows for is costs that are incurred in the collection of arrears or any (common area) repairs that are caused by damage by either the shareholder or anyone occupying their suite.

If it's a repair to the building that the co-op at large has to pay for and if the co-op does not have sufficient funds in reserve to pay for those repairs, then those costs are past onto the share-holders. Furthermore, if those repairs are in excess of $20,000, the shareholders must vote on that repair.

In the prior talk message from Ned in Toronto; I'm curious, in which governing document does it state, "If repairs to a coop building area is in excess of $20,000, the shareholders must vote on the repair"?

Hello Deborah,
It's in our buildings Rules & Regulations under a section specific to board operations. "Limits of Authority". We recently amended it to allow for the board to make immediate decisions for expenses over $20K if it was an emergency situation that had an immediate or impending risk to health, life, property, infrastructure, safety or the environment. We then defined what an emergency situation constitutes and for example, no heat in multiple units, multiple frozen pipes etc. Shareholders must be informed of the emergency expenditure (>$20K) within 4 business days of the occurrence.
Ned

Ned,

That $20K number is news to me. I've never heard of such a thing. Maybe it depends upon where you live.

Here in NYC, our Board has never had any restrictions like the ones you describe. If something needed repairing, we went ahead and fixed it without limitations. After all, that's the job we were elected to do.

I wonder if that's a Toronto vs. NYC difference?

A. “It is impossible to determine the validity of the fee without knowing the content of the letter and the terms of the co-op’s proprietary lease,” said attorney Michael T. Manzi of the New York law firm of Balber Pickard Maldonado & Van Der Tuin, PC. “Many proprietary leases include a provision that permits the co-op to charge a tenant/shareholder for the co-op’s legal fees if the tenant/shareholder is in default and the co-op brings an action or proceeding for the default. If the co-op’s proprietary lease includes such provision and no other provision pertaining to attorneys’ or other fees, then the co-op may not charge a fee for the letter unless the letter constitutes a notice of a default under the proprietary lease and the co-op brings an action or proceeding against the tenant/shareholder. Some proprietary leases include broader provisions, however, that would permit the board to charge such a fee.


“Even if the fee is valid, it is poor practice to impose the fee on some shareholders but not others and in some cases such practice would remove the board’s action from the purview of the business judgment rule. However, there may be something different in this situation that caused the board to impose the fee. Regardless, the tenant/shareholder should write to the managing agent and request a justification under the terms of the proprietary lease for charging the fee and inquiring as to why the board imposed the fee against her but not others.”

There is a difference between "illegal" and "unfair". Have you checked with an attorney to determine if the charges are really of the illegal variety? If they are, the same attorney should be able to advise you about what courses of action are open to you.

If the existing board has a history of adding unfair charges, the best remedy is to vote to replace the board at the next annual meeting. You eliminate all future charges and can decide to make restitution for previous charges that were not fair or discriminatory.

I am a shareholder whom purchase shares in a cooperative building. When I purchased my shares I wasn't married. I am now facing a divorce, and my ex husband wants to stay living in my apt. Or demands have of the property worth. The shares were never transfer to the married name. Does he have any rights to receive monies if I sell?

I am a shareholder whom purchase shares in a cooperative building. When I purchased my shares I wasn't married. I am now facing a divorce, and my ex husband wants to stay living in my apt. Or demands have of the property worth. The shares were never transfer to the married name. Does he have any rights to receive monies if I sell?

Hello Evangelina,
I agree with Steve; you need to see a lawyer. In the state of New York assets acquired before marriage regardless of how acquired (inheritance, gift etc.) should be immune from distribution. In order to establish an asset as separate property, it must remain under the control of the spouse claiming it. This includes if you sell it and any appreciation. Based on your short description, he is not entitled to it. However, there are "if and or buts" which may apply and why you need to seek legal advice. Here is an informative document (highlight, copy + paste into your search bar) http://www.herjustice.org/assets/pdfs/TheBasicsSeries_English/Getting-a-Divorce_ENGLISH.pdf
All the best to you, Ned

I am a shareholder whom purchase shares in a cooperative building. When I purchased my shares I wasn't married. I am now facing a divorce, and my ex husband wants to stay living in my apt. Or demands have of the property worth. The shares were never transfer to the married name. Does he have any rights to receive monies if I sell?

I am a shareholder whom purchase shares in a cooperative building. When I purchased my shares I wasn't married. I am now facing a divorce, and my ex husband wants to stay living in my apt. Or demands have of the property worth. The shares were never transfer to the married name. Does he have any rights to receive monies if I sell?

I am a shareholder whom purchase shares in a cooperative building. When I purchased my shares I wasn't married. I am now facing a divorce, and my ex husband wants to stay living in my apt. Or demands have of the property worth. The shares were never transfer to the married name. Does he have any rights to receive monies if I sell?

Hi Evangelina - I sincerely hope you've hired (or will hire) an attorney to handle your divorce, and not try to do it by yourself or use some divorce-in-a-box or online means. If you don't have an attorney, you face far more potentially damaging consequences than those that come up in connection with your co-op.

If you don't have an attorney, get one. If you do have an attorney, the questions you are asking here should be directed to your attorney. If you don't have faith in your attorney's ability to answer, hire a new attorney.

I'm sorry if this is sounding very cold and unfeeling. I went through a divorce, with an attorney, and it was still a messy, aggravating affair. I shudder to think where I'd be now if I didn't have an attorney representing me.

Please remember that whenever you ask for legal advice in a public forum like this, the advice you receive will be worth what you pay for it.

My best to you,
--- Steve

What were you threatened for? What was the repair? Where was the repair?

I ask because as a shareholder, you can generally find your rights and responsibilities written out in the proprietary lease. The lease entitles you to live and enjoy the apartment with conditions regarding repairs, upkeep of the apartment, renovations, etc. The lease will explicitly say what you, as the "lessee" are expected to maintain and fix in your own apartment. In some cases, the co-op may fix an item in your apartment, such as a window, and will bill you back for it because in the proprietary lease it is stated as your responsibility. To be sure, I do not know what the repair was or if the window is your responsibility, I am only using this as an example.

As a general rule, you can be held responsible for damages to other shareholder's apartments and to the building. For instance, if your air conditioner is leaking and creating water damage to the brickwork and the walls of the apartment below, you can be charged for those damages. Similarly, if you are responsible for the bathroom toilet and it has a persistent leak, causing damage below, you can be charged for those repairs.

Regarding the "legal fees". Are you sure they are legal fees and not "late charges"? The management company should state clearly that it is a charge for paying late or tell you if it is a legal charge. Also note, if you were placed into legal collection for arrears, you can still be required to pay legal fees even if you do not reach court, for instance, if you work out a payment plan.