New York's Cooperative and Condominium Community

Habitat Magazine Business of Management 2021

HABITAT

Subscribe for Daily Updates!
Optimum way to handle arrears when converting condo to coopJul 26, 2007




If we convert to a condo, we know that we have a small number of residents that are in arrears for modest amounts.

On the date pf a conversion wherein stock certificates are exchanged for deeds, what is the best way to ensure that the surviving homeowners association (HOA) is not saddled with any “debt”.

One thought is to place a lien on an apartment such that a title search will disclose a claim against the owner. In effect, this should establish a primary claim against the owners.

However, if the shareholder cannot convert a coop loan to a condo mortgage or obtain a reverse mortgage, this encumbrance may thwart the orderly conversion process.

In effect, the HOA would operate a coop corporation for a limited period of time until the arrears are satisfied.

May I have some views or interpretations?

Yes, we are seeking advice of counsel, but with so few coop-condo conversions there is not much to review any outside assistance would be welcomed.

Join the Conversation Comments (2)
foreclosure - Anonymous Jul 27, 2007


I thought the co-op has the right to foreclose on a unit when the shareholder doesn't pay the maintenance. The process probably will take "forever", but I am sure the conversion process (co-op to condo) will take just as long.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
foreclosure - Bobby Jul 27, 2007


No anons, anon

ty Bobby

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
foreclosure - Anonymous Jul 28, 2007


so then, what is the co-op's recourse?

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Me can't type: coop to condo - Paul Jul 27, 2007


Just correcting the heading

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation

Introduce yourself to other members of Board Talk! Log in below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Introduce yourself to other members of Board Talk! Login below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Ask the Experts

learn more

Learn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments

Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise

Source Guide

see the guide

Looking for a vendor?