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Selling a HDFC apt

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Selling a HDFC apt

Postby hdfcdave » Wed Jul 04, 2007 9:38 pm

I thinking of moving from my HDFC apt, which means that I have to sell. My building was bought in 1998 from the city, that was when we closed. On the deed I see an income restriction. The deed makes no mention that any profit of sale should go to the city, but the by-laws, used for incorporation, which were adopted in 1993, says that 40% of profits go to the city. My certificate of shares says that it depends on the by-laws. Someone in the building told me that the City does not have us listed as a 60/40 and that the profit breakdown soley depends on the by-laws which could be changed. In a meeting the sharholders unanimously voted to change the by-laws in this respect. How could I find out the truth?

Also does anyone know a lawyer that is familiar with these cases that I could use?
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Postby TenantNet » Thu Jul 05, 2007 4:37 am

Thanks to our HDFC expert on this:

If the conversion actually took place in 1998 the 60/40 is more than likely not applicable.

The fact that the deed does not reflect a 60/40 requirement is a good indication and by checking into ACRIS this can be easily determined. All 60/40 HDFCs have also a 60/40 Security Agreement that can be found in ACRIS as well. If there is no such agreement then I would dare say that the By Laws were erroneously supplied to the co-op at the time of conversion, nothing unusual in HPD rushing a building out without checking the documents provided.

Generally speaking we were successful in eliminating the 60/40 from buildings converted after April 1995 although some buildings already in the pipeline that covnerted after April 1995 did retain the 60/40 Security Agreement. The buildings prior to April 1995 which had a 60/40 Security Agreement still are subject to it although we are still trying to get the City to assign the 40% to the co-ops - the HDFC Council recommends taking the City's 40% and place it into a CD and hold it as in escrow in case the City asks for the money you have it or when we are able to get the City to assign the 40% to the buildings you'll have it. If you give it to the City you will never get it back, but legally the City can demand it - so just hold it and wait for the City to ask for it, avoid temptation and do not use it for any other purpose.

One should contact the HDFC Council at http://forums.prospero.com/HDFCCentral

The HDFC Council
601 West 136th Street, Suite 1
New York, NY 10031-8101
Tel: (212) 862-5051
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