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Is the roommate of a shareholder legally considered a tenant?
Or a spouse, if the spouse's name does not appear on the certificate?
I couldn't answer this question - hoping someone else out there can.
Thanks.
Are nonshareholder residents considered tenants legally?
If a non - shareholder resident is there 30 days or more they become a legal tenant by Squatters Rights. They are not the S/H but they do become a Tenant, once again, after 30 days. All co-ops should be aware of this and be careful. Many co-ops don't even allow this because it brings the value down, just as too many sublets can lower the value. Many co-ops that I know that used to sublet and allow what you are speaking of have stopped this because these people have no vested interest and it becomes difficult to get squatters (whether roommates or not) out. I do suggest that if someone wants a roommate or boarder, they should have agreement, such as a Lease with the person for length of time, etc. That would make things easier in the long run.
Roommates i.e., boarders are not S/H's. They are not on the Lease nor on the Stock Certificate whether married or not. The problem with this situation if not married or family member, is that after 30 days they become a Tenant (considered month to month)as a Squatter. Then it becomes difficult to get that person out, the S/H if wanting to get that person out would have to go to Housing Court and start eviction proceedings. In a marriage that might be quite different, but with a family member if there is any problem and the S/H wants the person (family member) out they would have to do the same thing. It becomes a very touchy issue. One must be careful to allow this because Roommates cannot be held to the standard a S/H should be held to. They have no vested interest which can become a problem. A married person is not a S/H, and most do have mortgages so it becomes more difficult to add name to a Stock Cert.
Just an opinion.
HabitatReporter here with advice from Edward T. Braverman, Esq., of Braverman & Associates , P.C.:
"A tenant is one who has a contractual relationship with the landlord. In Co-op parlance, that would mean one who is named in and who has executed a Proprietary Lease. A roommate is legally considered to be an occupant: a person who occupies the housing accommodation with the consent of the tenant. Under New York Law every tenant is entitled to have a roommate to whom the landlord (Co-op) cannot object. A subtenant is one who has a formal agreement with the tenant, who (the tenant) has assigned his lease rights to the subtenant, subject to all of the terms and conditions of the lease (Proprietary Lease) with the express written consent of the landlord. His sublease must be something less than the full term of the lease so that the occupancy of the apartment reverts to the tenant of record prior to its expiration. A spouse who is an occupant, while not a tenant, generally will be entitled to receive the transfer of the apartment upon the tenant’s death without the consent of the Co-op’s Board of Directors."
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The only person who's a shareholder is the one who's name is on the stock certificate. Anyone else is a roommate, although if related by blood or marriage they may be a family member depending on the propreitary lease.
Spouses are determined by being married. Spouses are not shareholders simply by being married. Their names must be added to the stock certificate, which is usually pretty easy unless there's a mortgage, then the bank has to ok the new name (crdit check and the like.)
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