Last month we distributed a bulletin describing recent New York State legislation affecting cooperatives and condominium unit owners. One of the items we noted was a change to the New York Real Property Law imposing a $20 limitation on the fees that may be charged to applicants for leases. In light of this change, we suggested that cooperatives charge such fees to the sellers of apartments rather than the applicant/purchasers. (The bulletin we issued is available here.)
On September 13, 2019, the New York State Department of State issued official Guidance stating that the $20 limitation does not apply to fees charged by a cooperative board in connection with a sale within a cooperative. Accordingly, cooperatives need not change their practices. Note that the Guidance also indicates that, as was previously understood, the limitation does apply to fees charged by shareholders, condominium unit owners or their agents in connection with the leasing of their apartments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
