What You Need to Know About Condo and Coop Board Meeting Minutes in NYC
Reviewing condo and coop board meeting minutes is a critical step of the due diligence process. We’ll explain everything you need to know about board meeting minutes from where to find them to how far back they go in this article.
Why Are Board Meeting Minutes Important to Review?
The board meeting minutes are critically important to review before purchasing a co op or condo apartment in NYC. The board meeting minutes will share real time information on pertinent financial matters in the building which can result in common charge or maintenance fee increases.
Any Issues or Complaints
A condo or co op’s board meeting minutes will shed light on any issues between unit owners and any current or anticipated litigation. The board meeting minutes may also shed light on any complaints from unit owners about pest or vermin issues such as bedbugs, rats and cockroaches.
For example, a co op’s board meeting minutes may record a conversation about ten units within the building having just been treated for a bed bug infestation.
A co op or condo’s board meeting minutes may also shed light on any prospective capital expenditures which may cause a special assessment to be levied in the future. This can be incredibly impactful if major façade repairs are being contemplated by the board, perhaps because of having just failed a Local Law 11 inspection. This is no joking matter as there have been cases in New York City where a major building has had to pay up to $50 million for a complete renovation of its façade after failing a Local Law 11 inspection.
Pro Tip: Are you a first time home buyer in NYC deciding between buying a co op vs a condo? Have one of our experienced partner brokers explain it to you for free! Read our guide on what does a real estate agent do for a buyer in NYC as your next step.
Where Can I Find Condo and Coop Board Meeting Minutes?
A co op or condo’s board meeting minutes can typically only be reviewed in person at the managing agent’s office. Your real estate attorney will have to make an appointment with the building management company to do so. Just because your attorney is responsible for due diligence on your behalf doesn’t mean you shouldn’t also review the board meeting minutes yourself.
Read Them Yourself
In fact, you should make every effort to go with your lawyer when he or she goes to review the board meeting minutes. That’s because only you can determine whether your potential, future neighbors on the condo or co op board sound reasonable or not.
Pro Tip: Not all buildings maintain board meeting minutes or allow the inspection of board meeting minutes, perhaps for security reasons or because they don’t want the additional scrutiny.
How Far Back Do Board Meeting Minutes Go?
Board meeting minutes will go back towards the very beginning of a condo or co op’s existence. Board meeting minutes typically start being recorded after owners take over the board from the sponsor, at the first official condo or coop board meeting when a board of directors is elected.
Most real estate attorneys will only review the last two years of board meeting minutes. Anything further back than that will not be relevant, and the attorney will not have time to review much more than that anyway.
Pro Tip: Not sure what your closing costs will be when you buy? Check out our interactive NYC Closing Cost Calculator for Buyers!
Read the Full Article: https://www.hauseit.com/condo-and-coop-board-meeting-minutes-in-nyc-explained/
Disclosure: Hauseit (https://www.hauseit.com) and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. The services marketed on Hauseit.com are provided by licensed real estate brokers and other third party professional service providers. Hauseit LLC is not a licensed real estate broker nor a member of any multiple listing service (MLS).
