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My Co-Op Board is refusing to meet with Prospective Buyer

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BankHeist

Junior Member
What is the name of your state (only U.S. law)? MI

Hello I live in Oakland County Michigan. I have been trying to sell my co op unit for two years and I have had a few offers but none of them met all the rules of the Bylaws of the Co op board (they do not allow land contracts for example).

Well I finally got an offer today and the buyer meets every requirement of the bylaws. Except today we told the co op board President and he said he is refusing to meet with the buyer because he wants to turn the place into a senior citizen co op for people 55 and older. The buyer is not 55 but neither am I. These new bylaws are not in place yet and he claims they won't be in place for a month of two.

Can the co op board really do this? My realtor told him that what he is doing may not be legal and the President just said "ok I will meet with him but I don't have anything on my schedule for the next month or two" even though he does not work and is home all day.

I would like to know what my options are here. I feel trapped and I really need to leave. Thank you.
 


HomeGuru

Senior Member
What is the name of your state (only U.S. law)? MI

Hello I live in Oakland County Michigan. I have been trying to sell my co op unit for two years and I have had a few offers but none of them met all the rules of the Bylaws of the Co op board (they do not allow land contracts for example).

Well I finally got an offer today and the buyer meets every requirement of the bylaws. Except today we told the co op board President and he said he is refusing to meet with the buyer because he wants to turn the place into a senior citizen co op for people 55 and older. The buyer is not 55 but neither am I. These new bylaws are not in place yet and he claims they won't be in place for a month of two.

Can the co op board really do this? My realtor told him that what he is doing may not be legal and the President just said "ok I will meet with him but I don't have anything on my schedule for the next month or two" even though he does not work and is home all day.

I would like to know what my options are here. I feel trapped and I really need to leave. Thank you.
**A: Buyer can sue the co-op Board.
 

You Are Guilty

Senior Member
Before the economy tanked, I used to get these cases all the time. (Park Avenue used to be a hard place to buy). Generally, you fight over a lawsuit and after much time and more expense, if you're lucky, the judge will say "you have to hold an interview within XX days". Interview held, buyer disapproved, and now you're back to square one with even less money in your pocket than before.

In light of the inherent difficulties in "forcing" a Board to do something, why not try the opposite approach? Be nice! Flies, honey, vinegar, that whole thing.
 

BankHeist

Junior Member
Before the economy tanked, I used to get these cases all the time. (Park Avenue used to be a hard place to buy). Generally, you fight over a lawsuit and after much time and more expense, if you're lucky, the judge will say "you have to hold an interview within XX days". Interview held, buyer disapproved, and now you're back to square one with even less money in your pocket than before.

In light of the inherent difficulties in "forcing" a Board to do something, why not try the opposite approach? Be nice! Flies, honey, vinegar, that whole thing.
So far I have been nice.

I told the board president that I have no job here and I have job offer in another state and I have to leave. This is going to mess up my life in a big way if this sale doesn't go through and eventually I will not be able to pay my co-op fees so it will be bad for the co-op as well.

So my questions are:
1. Can the board refuse a sale if the buyer meets all the criteria of the current bylaws but doesn't meet the criteria of bylaws that don't even exist yet?

2. The current bylaws are not legal, they violate federal laws. Can I use this to my advantage or will it hurt me? The bylaws currently say no one under 18 can live in the building and a lawyer told them the had to take that part out, which is why now want to change to a senior citizens co-op to get around that.

3. If you were me, what would you do? Keep in mind I HAVE to leave. My buyer meets all the requirements of the current bylaws.
 

DeenaCA

Member
The current bylaws are not legal, they violate federal laws.
Find a fair housing agency near you at http://www.fairhousing.com/index.cfm?method=agency.search, or file a complaint online at http://portal.hud.gov/hudportal/HUD?src=/topics/housing_discrimination.

The bylaws currently say no one under 18 can live in the building and a lawyer told them the had to take that part out, which is why now want to change to a senior citizens co-op to get around that.
That's been illegal since 1989. Such a policy violates the federal Fair Housing Act unless the housing meets the definition of "housing for older persons" at 42 US Code 3607 (http://www.law.cornell.edu/uscode/html/uscode42/usc_sec_42_00003607----000-.html). The board cannot avoid liability by stonewalling potential sales and claiming that the development will be converted to senior housing in the future.

Here are the fair housing charges that HUD has filed so far this year: http://portal.hud.gov/hudportal/documents/huddoc?id=2011charges.pdf. More than half of them are for discrimination based on familial status (families with children under 18). This is a hot-button issue and HUD takes it very seriously. The threat of a fair housing charge might convince the board to reconsider.
 

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