Co-op Tenant Wasn't Holder of Unsold Shares

August 31, 2009

LVT Number: #22115

Landlord cooperative corporation sued to evict proprietary lessee for attempting to transfer her apartment shares or sublet the apartment without landlord’s approval. The proprietary lessee claimed that she was a holder of unsold shares and therefore didn’t need landlord’s approval. She asked the court to dismiss the case without a trial. Instead, the court ruled for landlord. A holder of unsold shares who hasn’t occupied an apartment need not obtain permission from a co-op board to sublet or sell shares. But proprietary lessee wasn’t a holder of unsold shares.

Landlord cooperative corporation sued to evict proprietary lessee for attempting to transfer her apartment shares or sublet the apartment without landlord’s approval. The proprietary lessee claimed that she was a holder of unsold shares and therefore didn’t need landlord’s approval. She asked the court to dismiss the case without a trial. Instead, the court ruled for landlord. A holder of unsold shares who hasn’t occupied an apartment need not obtain permission from a co-op board to sublet or sell shares. But proprietary lessee wasn’t a holder of unsold shares. She was never designated as such by the co-op sponsor as required by the building’s offering plan.

210-220-230 Owners Corp. v. Arancio: NYLJ, 8/19/09, p. 31, col. 1 (New Rochelle City Court; Colangelo, J)

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