Expert: Matt Heisler - 6/3/2011

Question
QUESTION: Hello I purchased a co-op about 3 years ago. It was my first "home" purchase and I thought it was such a great move. Well, I've been having some issues with obtaining documentation/records. I have repeatedly asked for the co-ops by-laws along with all documentation that each unit owner should have such as any HUD documents and finance statements regarding the co-op. Documents that reflect what the co-op is responsible for and what the unit owner is responsible for. What repairs the owner is responsible for and what is the co-op responsible for. I'm trying to sell this unit but its been difficult. They are not very helpful. Repairs have to be made but I'm getting no where. I need to know what to ask for and how to go about asking for it. I tried researching but I'm not getting anywhere.Please help me.

ANSWER: Hello.

You don't mention what state you are in, which would be helpful.  Regardless, these are the things I would try.

First:  In many states, the ownership agreement of a condo or co-op is recorded with the deed at the registry.  Call your local registry, give they your address and co-op name, and have them search for those documents.  They may not be updated, but they will serve as a starting point for the information you seek.

Second:  Call the attorney or title company who closed your loan.  These documents are typically required by closing in most transaction.  They may still have your file and the documents.  You need them to sell, so I expect you needed them to purchase the unit as well, and may have copies with your purchase documents.

Third:  Send them a certified letter requesting the documents, and copy an attorney.  The documents should be yours, by right, and letting them know you are serious may get their attention.  You say it has been difficult, but I don't really understand that.  Either they have given you the docs, or they have not.  If they have not, get the older copies.  If they have not, make sure you know who the owner/property manager is, and let him know that getting you a copy is a priority, and you will call him every day until you get the docs.  Then call him every day!

---------- FOLLOW-UP ----------

QUESTION: First of all THANK YOU for your timely response.

as a follow-up: The property is in Connecticut.  I purchased the co-op in cash, no loans/mortgage.  At the time of purchase I had no attorney.  The transaction took place in the unit's kitchen with management, seller and myself.  I was given a rough photocopy of the by-laws and some documentation about the co-op being part of H.U.D.  I asked them several times to forward a clean legible copy or updated by-laws along with additional documentation such as rights and responsibilities but still nothing.  It's been difficult because the couple of potential buyers that have been interested in purchasing were directed to management (being that they haven't given me the requested resale packet or purchasing application) and management would not provide requested information in a timely manner or would make unprofessional comments as to my asking price for the unit.  I need to request these documents, I just don't know the proper names of these documents, especially the H.U.D. documents.  What I have is a very bad photocopy of the by-law that is stapled together.  This was my first major purchase.  I was so oblivious and a fool but I had no one to consult with because I don't know anyone who owns property.  Such a mess!  Please advise.

Answer
OK.

First of all, congrats on having enough cash to buy a property on your own.  Second of all, shame on you for not being careful with your hard earned dough!  A real estate attorney would have cost you about $600, and you're about to find out what they would have saved you. Probably a lot more than that. A buyers agent probably would have cost you nothing.  Please don't do that again, and I would certainly discourage people you know from buying direct, for exactly this reason.

In addition, it sounds to me like you're selling your home yourself, and based on your level of knowledge I don't think that's a good idea.  You're asking basic questions here that any CT real estate agent should be able to help you with.  You should probably list your property with one, and let them hound the management company for the docs.  That will keep the Management company out of the loop, and keep them from impacting the sale of you unit. Make no mistake, they are costing you money.

Should you choose to continue to pursue this yourself without an agent, get an attorney and have him get the docs.  He can explain what you need, and get current copies.  You may have to pay a small fee to the management co for the docs, but this is customary.  An attorney will help you with the sale, and probably cost less than $1000.  I'm sure the docs you need are similar in CT, in MA condo they are the Master Deed, the Rules and Regs, and the Budget.  For a co-op, you may need similar or more docs.

Your experience has taught you that putting your deal in the hands of a management company is foolish - some are good, some are not, all are slow.  Get the docs up front, have copies scanned and ready to give any prospective buyer when they ask.  

Good Luck.