The Mystery of the Co-op Share Allocation

I live in a ground-floor co-op studio, and my maintenance charges are unreasonably high. After referencing the offering plan, I see that the apartment somehow has the same or more shares than many other bigger (and better) apartments. But… why? Could the initial allocation perhaps have been some kind of error? Does this have anything to do with the commercial space I share a wall with? Is there something incredibly valuable (but also entirely secret) under my floorboards?

In addition to learning how this happened, I would also very much like to right this wrong, pay a little less every month, and not frighten any future co-op studio buyers (who’ll have enough to scrutinize already). Does anyone have any legal expertise or personal experience related to the resolution of an issue like this? I would greatly appreciate any assistance or insight.

erfurt

in General Discussion 7 years and 11 months ago

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slopefarm | 7 years and 11 months ago

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Good luck. You may not have any rights after closing, and this is a zero sum game. Any adjustment will cost your fellow co-opers. But yes, get sound legal advice on this.

erfurt | 7 years and 11 months ago

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Thank you for the comments! I was told (by the listing agent, mind) that the maintenance could be changed because of a past spatial rearrangement that took place between the the commercial space and the studio. Upon reviewing the claim in contract, the closing attorney found no immediate evidence of such a re-allocation or any certificates of occupancy for special use.

I was resigned to live with the higher maintenance, but now that I’ve gotten a sense of other fees, building-wide, in addition to a healthy new assessment, I’m starting to re-visit my options. Also, I aim to make friends in the building the only way I know how: increasingly aggressive litigious behavior. Jokes aside, I have contacted the closing attorney and will see what the optimal course forward is. Thanks, Forum.

evg25 | 7 years and 11 months ago

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When you purchased the unit, what explanation was given your from the offering plan? This should not now be a surprise considering all the documentation would have been in your possession before purchase. That being said, ask the attorney who did your closing.

resident2 | 7 years and 11 months ago

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First check your certificate of occupancy, you may well have a professional apartment or a commercial use or a medical use apartment.
If you do not have any special use certificate of occupancy then see if the law firm that wrote the original offering plan is still around; many of them are from the 70’s & 80’s. If they are, they may well be able to shed some light on the issue.
In order to get a re-allocation of shares, the board will have to buy back some of your shares. This is not something any co-op board is going to do lightly. So you need to show a very strong case for it.
Even if you “donate” the shares back in order to get a lower maintenance, the board may well not want to set that precedence. And the legal & recording fees to get there may not be worth it.

EJR | 7 years and 11 months ago

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you may need a lawyer to sort this out, but sounds to me like your unit may be able to used for commercial space, which would make it more valuable.