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sale of sponsor unit without notification to shareholdersJun 06, 2019

A shareholder/board member in my coop simultaneously sold her apartment and bought another (bigger) apartment (sponsor unit). The bigger apartment she purchased was one of few apartments that our coop had originally decided to keep for income purposes. I guess the decision to sell a sponsor unit is within the powers of the board, but I thought that when the board decides to sell a sponsor unit, they are supposed to notify ALL shareholders, so that every shareholder has en equal opportunity to buy that apartment. Am I wrong? There also seems to be a conflict of interest when the sponsor unit is sold to a board member.

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Sponsor Unit Sale - ABATEMENT QUESTIONED Jul 20, 2019

While I don't have an straight answer to your question I would like to share what happens in my coop --the Sponsor puts his apartments up for sale at a high price resulting in no purchase and then he rents them. He never announces to the Board or to Owners that a unit has been vacated by the non-eviction tenant. Also I do not believe it is the Board who has power to decide what happens to a Sponsor Unit or who the Sponsor sell his unit to, for this you must consult your Offering Plan for the rules about selling non-eviction tenant units. In my coop the rule is the Sponsor must sell the unit upon the death or voluntary move out of the Non-eviction tenant. The OP does not state the Sponsor must first offer the Unit to the Board or an Owner first, there is no Right of First Refusal in my coop

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