So you enter into a contract to purchase a co-op and at the interview with members of the Board discover that an assessment of $150 is will go into effect by the time you are expected to close your purchase. Do you have the right to cancel this contract?
The standard co-op contract of sale includes a representation by the seller that it has no actual knowledge of and has received no written notice of’ any assessments not stated in the contract.
So, if the seller is a board member and knew of the impending assessment, or if the board had already notified shareholders of the assessment, you probably can cancel the contract.
Even if the assessment became known only after the contract was signed, the board itself might re-examine the buyer’s application and revoke its approval of the sale.
The Law Office of William J. Reinhardt, Jr. has been representing buyers and sellers of co-ops in New York for over 27 years. Call 718-377-8880 to request legal representation on your transaction.