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Are you required to disclose issues with your board to potential buyers?

by | Jan 19, 2016

To tell or not to tell? That is the question. Are you legally obliged to disclose all information to a potential buyers, or do you just want to air dirty laundry? It depends.

Since I’m not an attorney, it depends on whether you have issues with your board. Even if you’re considered worse than the devil by your board, you are selling. Your relationship with the board no longer matters. Except for one last issue. The board needs to approve your potential buyer before signing off on the deal. So much for “property rights.” I digress.

headerThe Board

Every building has a board responsible for maintaining and handling all business pertaining to the building (someone has to do it). For that, I appreciate some aspects of the board’s role. That being said, it can be extremely difficult to work with a building board.

Building Violations.

Congrats, you hit the coop jackpot. You (or the previous owner) did something to your apartment that violated the building coop’s rules. You’re stuck. Depending on the infraction, you will more than likely be forced to fix the issue in order to sell your apartment. You will also need to inform your potential buyer of the unresolved issue. In turn, you must ensure the buyer knows the board is aware of the situation. While it is a major issue that must be addressed, you don’t want to scare off your buyer. A building violation can be a major headache or a minor event. Either way, you want it to be a non-issue for your buyer. Work with the board, to resolve the issue. Quickly.

Difference of Opinion.

Known deficiencies are required to be disclosed to interested buyers. However, differences of opinion, and your relationship with the board do not need to be disclosed to potential buyers. The buyer is not buying your relationship with the board, they are buying the apartment. In fact, the board will probably be very happy to see a new buyer. The apartment is compliant. As long as the strained relationship is not due to an infraction from your apartment, you are not required to disclose any issues. Plus, you’re leaving, so  your standing with the board is ultimately irrelevant.

Time to close.

Whether you loved or hated your apartment and the coop board, or you are somewhere in between, it doesn’t matter. All that matters is closing the deal and selling your apartment. If the board has to interview the buyer before they will sign off on the sale, then yes, you should be prepare the buyer to succeed where you failed. This will work in your favor. If the board saw you as a blemish on its otherwise perfect record, it’s your chance to have that blemish removed. Make sure your realtor fully communicates with the buyer and their realtor on potential board issues. This is why picking it is crucial to pick the right brokerage to list your apartment.

The team at TripleMint is well known throughout New York City, and can help you navigate rough waters with a difficult coop board. By going down this path, you ensure that the board will approve the sale to the new buyer, and you are off to bigger and better opportunities. Don’t waste any more time reliving any petty issues from the past. Move on and sell your apartment.

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