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Co-op Sale Contracts: Allocating the Risk of Potential Co-op Board Interference
When may a coop buyer escape from a sale contract based on erroneous statements made by the coop board that would, if accurate, interfere with the buyer's right to occupy space associated with the coop shares the buyer has contracted to purchase? The First Department recently faced that issue in Pastor v. DeGaetano' 2015 WL 1781530, and held that the seller was not entitled to summary judgment on the buyer's claim for return of his down payment, emphasizing that a coop buyer is entitled to an assurance that the coop corporation would not disturb his exclusive possession if he consummates the sale.
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