A few years ago, Nassau County passed a new law giving cooperative leaders and councils 40 days to review the advice packages they received from their candidates to speed up the process and conduct a scheduled interview and either pass or fail that person or a couple. Failure to do so within this time period will result in the district issuing a warning the first time, a $ 2,000 fine the second time, and then the same fine.
Suffolk County has had a law for many years that if a cooperative commission refuses an applicant and refuses to buy, then the board has a legal requirement to respond to the buyer within 45 days. why the offer was not accepted.
Since the law went into effect, I am quite confident that even more has come to the final table of their successful purchase; but I believe that without the law, this would be commonplace, and fewer people and families would end up being happy vacationers.
Queens has a few co-op tips that actually reveal how much proven and documented income is required to buy a one, two and three bedroom apartment. They are also permitted by their ordinance to set prices on a monthly basis. If the cooperative does not have a permit, then setting prices or refusing an applicant is what I consider antitrust under the 1890 Sherman Antitrust Act against price fixing. If the buyer thinks he was turned down, either because of discrimination or because of a fixed price, then the buyer’s attorney should send a letter to the management and the president of the board of directors of the cooperative.
In addition, if the price is lower than what is acceptable to the board, it may be worth visiting a specific division to understand why it is selling at a lower price in order to be more informed. The buyer will most likely be renovating, so the market value will be comparable to the market value of others who are selling their apartments in a similar condition.
Another idea is to get a rebate from the seller so that the price that is displayed after the close is more related to the standard selling price in this particular project, but my professional opinion is that my first idea is much better. To me this is called transparency and makes it easier for buyers to understand what is expected of them.
But some cooperative councils have a debt-to-income ratio of less than 30 percent as an added safety net to make sure buyers aren’t overly leveraged, especially today given how and how the Covid-19 pandemic has affected earnings. More cooperatives should adopt a similar system so that realtors are much more aware of what the buyer needs to meet the requirements. Creating a more complex and difficult task for the agent in some way discriminates against us in terms of making a living. The openness and transparency that allows us to better do the job of finding qualified professionals with a team collaboration mindset will save a lot of time, effort and frustration for all parties involved.
Unfortunately, today discrimination still occurs in our world, but at least there is much more legal protection and opportunities to go to court if it does. Individual and family financial situation, including income on tax returns, debt / income ratios, business and / or service status, and background checks should be the only variables used to determine whether those being tested are reliable and viable. … for a specific cooperative.
But I would venture to say that there were marked improvements and more positive results in the procurement process thanks to the adoption of the cooperative governance process and the revision law. I am not making generalizations about all of the co-op’s advice, but those who discriminate for any reason other than financial are breaking the law.
I am quite confident that most boards of directors exercise due diligence in scrutinizing potential buyers and tenants and act accordingly by doing the right thing. But in the very near future, I truly believe that the Nassau County Legislature must and will do the right thing and pass similar legislation in Suffolk County so that within 45 days, refused buyers are given a reason.
Some board members of the cooperative may disagree with this potential law, but if you treat people fairly and base their approval on financial performance, then you have nothing to worry about, unless you discriminate arbitrarily on the basis of race, religion, national origin, gender. etc. family status.
If real estate brokers and their sellers have come under scrutiny as Newsday’s three-year investigation unraveled, and more than 68 brokers and agents have been caught redirecting buyers to other communities, their licenses have been suspended or revoked, then any complicity should be imposed or the type of punishment or fines. operating advice that does not obey the laws.
I recently had one of my clients who was not even given the opportunity to receive a review, and I was told that they destroyed over 1000 pages of his statement without returning it to him. He was not given a reason and was extremely perplexed and upset as the council of the cooperative was not obliged to tell him why. It is now in the hands of his attorney.
I believe that state and local legislatures should standardize the requirements that cooperatives must have so that everyone is treated equally and fairly. The necessary documentation will still be required for all buyers, but at least we realtors will know in advance what we need to do to find qualified buyers, reducing wasted time and money.
Philip A. Rice is the owner / broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. For a “FREE” 15 minute consultation, an analysis of the value of your home, or to answer any questions or concerns you may have with it, please call the mobile phone: (516) 647-4289 or email: Phil@TurnKeyRealEstate.Com