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May 8, 2009
Co-ops and eviction question
Can someone tell me if a co-op can evict an owner and shareholder in the corporation for maintenance payments in arrears? Or can they only sue for the amount? Thanks!
Comments
Read the bylaws. Generally they can institute eviction proceedings, the shares would be sold and the proceeds used to satisfy the corp, then the balance given to you. However, if there is a mortgage and a recognition agreement, the bank would generally step in and pay the maintenance to protect its interests. But if you're at that point, you need a lawyer, not a blog.
Posted by: denton at May 8, 2009 5:48 AM
Denton is correct.
We had a lawyer from the management company send a letter and usually the shareholders pay up right away with the thread of being sued. We've sued in one case where the owners was already in the nursing home and uncapable of caring for himself so his maintenance amounted to something like 10K so we sued for the taking over the shares, sold the apartment, took what we were owed and the rest went to the owner or his trust in this case.
Posted by: Kensingtonian at May 8, 2009 9:30 AM
stiff the bank before stiffing coop who has 1st lien on your shs.
Posted by: more4less at May 8, 2009 9:36 AM
Yes -- we had a similiar situation where a shareholder (had no mortgage) was renting his unit, collecting rent and not paying maintenance fees. Unfortunately, the family renting from him was evicted.
Posted by: StuyIvy at May 8, 2009 11:18 AM
It depends on the situation - but as denton said, if there is a mortgage and a recognition agreement in place, you inform the lender that holds the mortgage. They will pay the back-maintenance to the co-op, then put the apt up for sale if necessary.
Posted by: mscrochety at May 8, 2009 2:06 PM
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