Lack of Certificate Prevents Condo From Closing

J.V. from Manhattan, NY writes:

Dear Mister Condo,

My condo is in contract small 4-unit Brownstone in Manhattan. We are all on the Board, one man is the president that we all elected solely based on gender. Had I known that he was a very difficult person I never would have agreed. My issue is our management company whom has since been terminated never renewed our temporary c/o (that’s another horror story). I cannot close without it. The “president ” is not allowing me to move forward with an architect or an expediter (I’ll even pay for that first payment) to get the process started. It has been over a month. He wants proposals and very worried about money. We do not have very this important certificate which is dangerous. But I particularly need it to close. He may cost me my sale which gives me much stress and sleepless nights.

I’ve tried everything, talking, meetings. Now he’s in Italy for 2 months. What can I do as a Board Member with a pending sale to move forward so I can close? I don’t know where to turn. He is a blocker. Does he have this power to make me potentially lose my buyers? Also, my buyers are giving us 120 days (now less) to get the Temporary CO. They want my unit and I want to move!!!!

Can you advise or direct me to someone who can help?

Mister Condo replies:

J.V.,

Hello! Please understand that I am not an attorney and offer no legal advice in this column. From what you have shared with me, you will likely need an attorney to help sort these matters out. I am sorry to learn that your previous management company did not file the proper paperwork with the city to keep the building’s Certificate of Occupancy (c/o) up to date. You may have legal action against the association for allowing that to expire. That being said, unless you are able to file the appropriate paperwork to get your Certificate back in good standing, you are very much at the mercy of the Board President, who appears to be a difficult person and indisposed for two months. Typically, unless your governing documents specifically call for the President to take action, a duty such as filing for the Certificate could fall on any officer. Since there are only four of you on the Board, you may be as qualified as any other Board Member to handle the transaction. You should check out this web page for some insight: https://www1.nyc.gov/site/buildings/homeowner/certificate-of-occupancy.page

While your President is following a Good Business Judgment rule by getting bids for the architect or expediter needed to satisfy the CO requirements, if you are financially harmed by the lack of the CO, you may also have a case to sue your association. Again, speak with a qualified attorney before taking any action.

I am afraid I don’t have better news for you. The failure to have an active CO on file for your association is a most unfortunate event, caused by a series of other unfortunate events. If you do end up suing your association, it should serve as a wake-up call for them to not let the CO slide again. As you have said, it is a very important certificate in NYC. It should be treated so nonchalantly by the Board. Good luck!