Posted by Mark Smith on May 14, 2000 at 15:34:02:
In Reply to: rent increased after owner saw us in person: is this illegal? posted by Michael on May 13, 2000 at 16:01:16:
I once had just the opposite experience. I was looking at a co-op apartment in Westchester County, and the selling/managing agent's secretary offered to lower the purchase price after she met me.
Later, while the managing agent was walking me through the building, we ran into the president of the co-op board in the elevator. The president complained to the managing agent that there wasn't enough turnover in the building. I thought that was an odd comment.
After we left the elevator, I asked the managing agent why the co-op would want more turnover. He explained that I would be purchasing the apartment for $8,000 (reduced from $8,500, because his secretary liked the way I looked), but that I would receive only $1,500 -- the par value of the shares -- when I sold the apartment. We later went to the offices of the co-op's accountant, who I knew, and he confirmed this.
Many co-op owners in Mitchell-Lama and similarly subsidized co-ops complain that, when they sell their apartments, they get back only their original purchase price (and sometimes all or part of their monthly maintenance that went toward amortizing the mortgage). But here was a private, unsubsidized co-op that offered an even worse deal.
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