We ARE a free nation aren't we??
Unless the Association is named on the Deed as part owner, NO! They can ask away, they can as that you not list it below the stated amounts in your blog, but they can't force you to do anything regarding how much you ask for your condo.
To the original poster:
What state are you in and RYDF (Read Your Documents First)?
Are you in a Coopertive, a Condominium or a Home Owners' Association?
I was not aware that any of these legal constructs could force an owner to set a minimum price of a unit, but i await edification with bated breath!
If the association has a right of first refusal and barrel full of cash they can buy up units and later resell them. It might not be a bad idea with the interest rates being so low.
The answer to the question as posed appears to be a resounding probably not, but maybe.
It depends on the type of association, the legal jurisdiction where the associattion is down to the county level, the declarations of Conditions, Covenents and Restrictions, any Master Deed.
If you google "condominium minimum price" or some similar permutation, one will find articles discussing this and there is no universal answer because it depends on the conditions outlined above. A more definitive opinion would be gained from a local expert, probably a real estate attorney or a real estate person educated on the local laws and possible contracts.
Can a HOA set minimum sales prices for condos? Yes, in a non-democratic country.
However, if the HOA actually owns the condo then they could sell it for whatever price they want. Setting the sales price too high will ensure that the HOA pays real estate taxes for a longer period of time. Also, a HOA making a profit or loss could be problematic with the IRS since the HOA is a non-profit corporation.
Beyond that, any governing document that empowers the HOA to set condo pricing for a condo they do not own will fail in litigation.
As John has said above, if the association has a large reserve fund, they can offer to purchase your condominium for a higher price than you are asking to preserve the value of the properties for future appraisals.
The epitomy of imbecility. When they refuse your sale, sue them. What low lifes, putting people through such a ridiculous notion.
I ponder that some persons ask these questions to check to see if there are really any sane people left in the universe. Indeed there are aplenty. Your bod is full of it, and overstepping its authority.
This is just one more example of mindless bod meddling and sticking its nose where it does not belong.
I want to know who from the web blog is making up these questions
Right of First Refusal versus dictating minimum price: Keep in mind these are two different concepts and transactions.
In some associations, the association or members according to the documents are given the first right to buy out. This is not a universal clause.
I have read that in some counties of New York State, condo associations in some courts have won the right to set a minimum price. My reading of the internet is that this is not common, and it may not even stand up in a higher court. (But first someone with deep pockets would need to challenge that to an appeals judge!).
Perhaps they are merely suggesting a price, just as an auto manufacturere does with MSRP. By any chance is it a newer property with the developer still holding a majority of units? If there are any deed restrictions, such as one might find in a property built specifically as lower income housing units, there may be some controls in place regarding price.
Have they stated what will happen to a seller who fails to play along with this attempted price fixing? As several people have pointed out, this will not stand up in litigation without some type of restrictive language in your docs. This is not to say that the language in your docs would stand up to a legal challenge either. Too many possibilities for this blog to be helpful with just the information you have provided. Good Luck.
Thanks everyone! Yes, I read my documents first and had a lawyer go thru every line with me. This is a NEW development since I purchased my co-op.
Yes, they set a minimum SELL price, not a suggested or "please list" price.
It is not low-income. It is an older property and we all own our apartments indiviually.
They have right of first-refusal in a short-sale or foreclosure situation only as per papers I read when I was getting mortgage.
But since they haven't put money into painting the buildings (one building is 2-tone going on 2 years now) I'm assuming they have no money to buy someone out if the HAD to move.
Thank you everyone for your posts and inputs -- I have sent the letter to my closing attorney (and town judge) to see what he says. I would think first person who tries to get a mortgage and is denied due to low appraisal will end up getting this reversed anyway.
I think the last post by John D. answered the question - this is a CO-OP, not a condo.
Totally different set of rules and governing docs! Not too familiar with co-ops, but I believe the owners do not own their UNIT but shares of stock in the co-op organization.
I would like to learn more about this.......
Can a HOA set minimum sales prices for condos? Turns out it isn't a condo but a co-op. Turns out it isn't a condo association but a Housing Cooperative?
Had the question owner provided the TRUE facts we could have saved a lot effort.
"Each resident or resident household has membership in the co-operative association. In non-equity cooperatives, members have occupancy rights to a specific suite within the housing co-operative as outlined in their "occupancy agreement", or "proprietary lease" which is essentially a lease. In ownership cooperatives, occupancy rights are transferred to the purchaser by way of the title transfer."
"There are two main types of housing co-operative financing methods, market rate and limited equity. With market rate, the share price is allowed to rise on the open market and shareholders may sell at whatever price the market will bear when they want to move out. In many ways market rate is thus similar financially to owning a condominium, with the difference being that often the co-op may carry a mortgage, resulting in a much higher monthly fee paid to the co-op than would be so in a condominium. The purchase price of a comparable unit in the co-op is typically much lower, however."
"With limited equity, the co-op has rules regarding pricing of shares when sold. The idea behind limited equity is to maintain affordable housing. A sub-set of the limited equity model is the no-equity model, which looks very much like renting, with a very low purchase price (comparable to a rental security deposit) and a monthly fee in lieu of rent. When selling, all that is re-couped is that very low purchase price."
So the answer to the original question is that it depends on which of the two types of cooperative you have.
The moderator should delete this whole bogus question.
The original poster was asking a question about a COOPERATIVE.
Totally different entity and laws.
I am the original poster.
sorry i'm a new owner and new to co-op/condo-- a FRIEND turned me onto this blog as she said the people were very knowledgable and very FRIENDLY/HELPFUL.
And seriously -- how much different are Associations, by law technically couldn't a condo and Co-op have identical rules?
I was asking if it was LEGAL, in NY STATE for an association to set a selling price far ABOVE market value for the region/property.
It was not in our rules or by-laws that they could reject on price -- the board could approve/deny a sale based on applicant/credit, pets, etc --
They have now stated in a letter sent to all occupants that they will REJECT any sale below the minimum price - on price alone. This seems to me to be illegal as it's price fixing being the minimum price is far above market value.
That was my question and thankfully enough Sweet and helpful people have given me helpful answers and routes to look into re: legality. The question is not bogus-- as anyone in a condo could face this kind of board issue as well.
Well people examined the question, but it was framed very poorly. Better answers would be gotten by asking the question with more specifics, particularly 1) State where the association is, ; 2) What kind of legal entity you are referring to a) Condominium association or b) Homeowners association or c) Co-op or Cooperative association.
The question is "bogus" in that it was poorly framed. Co-ops are vastly different from condominium associations and the answer to your specific question is probably opposite from the answer to someone asking about Condominium Associations.
Question askers also need to be more willing to do their homework by reading their own state law, and their own documents. Generally the specific answer lies there so I have proposed a standard acronym to cover that (RYDF): Read Your Documents First.
From what I understand if you bought equity in a coop in NY, they can set the price, but I may be mistaken. Generally, minimum price setting is not legal for Condominiums.
It looks like the main conceptual differences between co-ops and HOAS and Condos , is why you buy into a co-op you are not buying real estate but shares in a corporation. I googled a bit for sites that may be more helpful you you co-op owners. Again RYDF...
and it looks like there are a lot of NY state and NYC web sites and links that would be more helpful to the co-op shareholders in those geographic areas.
This blog gets few co-op questions, and yes condos versus coops have vastly different rules and laws governing them.
It is instructive to perform a bing or google search using "coop vs condo", or "co-op vs. condo", or "cooperative versus Condominium" or some other permutation.
Apples versus Oranges.
So many people will just take whatever a board says as the gospel truth. In any given neighborhood I'd say 25% would not even question whether or not something the board says is true.