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we had an illegal sublet in our coop which eventually ended after several years. . the apt. owner applied for and was granted a legit sublet but there is a rider attached to the agreement which gives 6% to our managing agent, Halstead (also a big broker) , if the apt. is sold to the tenants or anyone else. This does not, somehow, sit right.
Conflict of interest?
we have a similar situation in our building (apparently) - can people please put up more responses. it would be helpful.
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If you raise the question, then it a conflict of interest. However, the conflict of interest in this case may have to be analyzed and, if sales are allowed by the company, then there should be some disclosure requirements on their part prior to acting as real estate representatives.
Usually, management companies may run a real estate as a branch of the busines, separate from the management function; it's a way in which management companies supplement their income. There may be some advantages to having the real estate branch represent your co-op as they generally know the building more intimately - amenities, population, house rule practices, etc. Also, they may have more inside information that you do not want to be shared.
IN one of the Habitat Magazines relating to legal counsel opinions, one of the opinions stated that the Board should abide by the most stringent rule of conduct possible and avoid any type of conflict of interest. I agree with this position as trust in the co-op community is critical to establish and maintain.
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