BY JOHN KIRITSIS, ESQ., CPA, MBA, MS, JD, LL.M
Collecting common charges in NYC co-op buildings can present various legal challenges due to the unique ownership structure and governing documents of co-ops. Here are some common legal challenges and considerations when collecting common charges:
- Non-Payment by Unit Owners:
One of the primary challenges is dealing with unit owners who fail to pay their common charges. Co-op boards must follow specific legal procedures to collect unpaid charges while respecting the rights of unit owners.
- Compliance with Governing Documents:
Common charge collection procedures should be in accordance with the co-op’s governing documents, including bylaws and house rules. Make sure that your collection efforts align with these documents.
- Non-Discrimination:
Ensure that the collection process is consistent and fair for all unit owners, regardless of their background or circumstances. Any discriminatory practices can lead to legal issues.
- Notices and Demand Letters:
Sending appropriate notices and demand letters to delinquent unit owners is an essential step in the collection process. The content and timing of these communications must comply with legal requirements.
- Lien Filings:
Co-op boards often have the right to file a lien against a unit for unpaid common charges. However, there are specific procedures and legal requirements that must be followed when filing and enforcing a lien.
- Foreclosure Proceedings:
In extreme cases, if unpaid common charges become a chronic issue, the co-op may consider initiating foreclosure proceedings. This involves legal action and should only be pursued after consulting with legal professionals.
- Negotiation and Settlement:
In some situations, negotiating a settlement or payment plan with delinquent unit owners might be a more practical approach than pursuing legal action.
- Bankruptcy Considerations:
If a unit owner declares bankruptcy, it can complicate the common charge collection process. Co-op boards need to adhere to bankruptcy laws while seeking the payment of outstanding charges.
- Reporting and Documentation:
Maintain accurate and organized records of all communications, notices, and collection efforts. Proper documentation is crucial if legal action becomes necessary.
- Legal Consultation:
Given the legal intricacies of common charge collection in NYC co-ops, it’s advisable to consult with legal professionals who specialize in co-op law. They can provide guidance on the proper procedures, compliance with regulations, and potential legal challenges.
- Consistency and Transparency:
Consistently applying collection procedures and maintaining transparency in communications with unit owners can help prevent legal disputes and challenges.
Navigating the legal challenges of collecting common charges in NYC co-ops requires a thorough understanding of co-op law and a commitment to following proper procedures. Engaging legal experts can help co-op boards effectively address unpaid common charges while minimizing the risk of legal issues.
Citations, References and Potentially Useful Resources for Further Information:
U.S. Constitution
New York State Constitution
Federal Securities Regulation
New York State Martin Act
New York Condominium Act
New York State Security Regulations
New York Business Corporation Law
New York Limited Liability Company Law
New York Uniform Partnership Act
Federal Internal Revenue Code
New York State Tax Laws, Rules & Regulations
New York City Tax Laws, Rules & Regulations
Winston Churchill Owners, Inc. v. Regents Real Estate Associates
Board of Managers of the Park Regis Condominium v. Park Regis Owners Corp.
Park Sutton Condominium v. 447 E. 57th St. LLC
28 E. 10th Street Corp. v. Veras
Riverside Syndicate, Inc. v. Munroe
Essex House Condominium v. Marks
The Parc Vendome Condominium v. Atkinson
54-56 Meserole Street Owners Corp. v. Rossi
The Beekman Regent Condominium v. Bottiglieri
Chelsea 19th LLC v. West 19th Street Realty LLC
ACRIS
New York Department of Finance
New York City Department of Buildings
New York City Bar Association
New York State Bar Association
Call 212 922 0005. Kiritsis Law Group.
Manhattan Office: 633 Third Avenue, New York, NY 10017. Phone# 212 922 0005.
New Jersey Office: 7309 Ventnor Avenue, Ventnor, NJ 08406. Phone# 212 922 0005.
Brooklyn Office: 6902 11th Avenue, Brooklyn, NY 11228. Phone# 212 922 0005.
Feel free to call us at 212-922-0005 for a free, brief and confidential consultation.
Whether buying real estate, having years of un-filed tax returns, have an immigration question, considering to start a business, faced with a commercial/business dispute or thinking about getting a prenuptial agreement — Our law firm is willing, able and ready to assist you. Call us at 212 922 0005.
We represent businesses and individuals throughout the 5 boroughs of New York City and most of New Jersey.
For a free, brief initial phone consultation with an attorney, call us today at 212 922 0005.
Our law firm provides a full range of legal services, within the following practice areas:
Real Estate
Business Law
Tax & Accounting Services
Immigration Law
Asset Protection
Business/Commercial Litigation & Disputes
The materials available through this website and any other websites owned by John Kiritsis (individually and collectively, the “Website”) are the property of John Kiritsis and his entities, and are protected by copyright, trademark, and other intellectual property laws. You may not use, reproduce, download, store, post, broadcast, transmit, modify, sell, or make available to the public content from the Website without the prior written approval of John Kiritsis. Beware that any unauthorized use of John Kiritsis’ trademarks and copyrighted content for commercial purposes in violation of John Kiritsis’s intellectual property rights, will be vigorously enforced. All other trademarks, service marks and trade names referenced in this site are the property of John Kiritsis.
ANY AND ALL INFORMATION POSTED IN THIS WEBSITE SHALL NOT BE A SUBSTITUTE FOR LEGAL ADVISE BY PROPERLY LICENSED COMPETENT ATTORNEYS. FOR INFORMATIONAL ENTERTAINMENT PURPOSES ONLY. NOT SUBJECTED TO FINALIZED LEGAL EDIT WITH REGARDS TO CONTENT. SITE PRONE TO CONTAINING ERRORS OF STATEMENT OF LAWS, RULES AND/OR REGULATIONS WHERE APPLICABLE.
ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.
The views expressed by this author are not legally binding or reflective of the author, the author’s firm, the author’s employers, the author’s employees, or any individual and/or organization.