Dennis Greenstein Quoted in the New York Times
"Who Must Pay a Co-Op Assessment?"

Dennis Greenstein was quoted in the real estate Q & A column in the June 15, 2007 issue of the New York Times. The letter writer bought a co-op from a sponsor who stated in writing at the time of the closing that there were no known assessments and wanted to know if he has any recourse because there was indeed at $2,500 assessment imposed a month prior to the closing.

Dennis answered that if the assessment is payable by the letter writer, he may have a basis to recover that amount from the seller. Dennis noted that the standard contract for selling a co-op provides a representation from the seller that there are no known assessments at the time of signing the contract, but it is typically silent with regard to assessments imposed between the signing of the contract and the time of the closing. Since the seller indicated in writing at the time of the closing, however, Dennis notes that the letter writer may have grounds to sue. Additionally, Dennis pointed out that by falsely stating that there was no assessment, the sponsor may have violated the Martin Act, which governs co-op and condo conversions. In that case, the letter writer could also file a complaint with the state attorney general’s office, which could compel the sponsor to refund the amount of the assessment.