Can the board start eviction procedings without having a face to face hearing with a shareholder?
The cause of the eviction is important. Is it for lack of payment or through a history of non-compliance of rules which will cause the termination of the lease and eviction?
Eviction for lack of payment requires a judgment from court prior to eviction by a marshall. Non-compliance with rules requires major issues, and possibly an whole legal procedure with court involved. Face-to-face communications most likely took place with management, in court, etc.
No one can be evicdted without judgment from court.
Well, it all depends on your Proprietary Lease. In the case of our property, we just went through eviction proceedings for a year of non-payment on maintenance. We went through out lawyer who got the eviction approved. The unit actually was to go to auction at town hall, but the day before the bank that holds the mortgage for the unit paid us the delinquent maintenance so they wouldn’t lose the mortgage. The bank was then able to sell the unit and we are actually going to be interviewing the prospective owner tomorrow.
If the issue is for delinquent maintenance you may want to have your lawyer contact their bank. The bank might pay the delinquent maintenance instead of lose the mortgage and then add the difference to the mortgage. That way you don’t have to worry about it and it becomes the banks problem.
Note that the standard Aztech recognition agreement requires that you notify the shareholder's bank if the shareholder falls three months behind in maintenance payments. Furthermore, if the bank chooses to pay the overdue charges on behalf of the shareholder, you must accept the money.
Our coop never had evictions before, and now we've got two possibly brewing. One has set up house in a deceased relative's apartment but has not applied to live here and is not paying monthly maintenance; and another who sublet from a shareholder and is not paying him. We have no role in that situation (the shareholder is paying the maintenance), but are watching it closely. Our lawyer is dealing with the squatter. It's painful that people seem to feel it's okay to take such advantage.
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You can start eviction proceedings, following the course laid out in the Proprietary Lease. If it does not say that you have to have a face to face meeting in the Prop Lease, you should be ok to begin. Run it by your Cooperative's attorney, should you still be concerned about it.
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