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One would think it would be easy to add a family member to a co-op stock certificate, but you can’t "just add a name." For boards, it requires careful consideration of multiple factors, including transfer taxes, flip tax implications, and the financial viability of new shareholders. Matthew Goldberg, partner at Hankin & Mazel, explains how boards should evaluate cases where incoming family members lack strong finances, such as recent graduates being added to elderly relatives' shares, and outlines the legal requirements and NYC filings necessary to protect the co-op's interests. Habitat’s Emily Myers conducts the interview.

The business of running a building is demanding work that requires making endless decisions — some that can quickly lead your board into a quagmire of legal difficulties. Legal Talk interviews New York's leading co-op/condo attorneys to find solutions, and get some guidance, on these challenges. For more co-op and condo insights, sign up to receive Habitat's free newsletters or become a Habitat subscriber today!

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When a commercial tenant becomes problematic — whether falling behind in rent, not performing repairs or some other infraction of their lease — co-op and condo boards need to act. In this episode Moshe Bobker, partner at Tane Waterman & Wurtzel, explains what the Yellowstone Injunction is and how this critical legal tool can both protect and challenge commercial tenants in NYC buildings. Learn how this Supreme Court proceeding works, when it applies, and most importantly, how boards can strategically use it to their advantage when dealing with problematic commercial tenants.

Key highlights:

• The four essential elements required for a Yellowstone Injunction
• Why timing is crucial: tenants must file before the cure period expires
• Strategic considerations for boards choosing between non-payment proceedings and holdover cases
• Common resolution paths, from early negotiation to full litigation
• Expert tips for boards to maintain leverage in commercial tenant disputes

Whether you're currently facing commercial tenant issues or want to be prepared for future challenges, this episode provides valuable insights for protecting your building's interests. Habitat's Emily Myers conducts the interview.

The business of running a building is demanding work that requires making endless decisions — some that can quickly lead your board into a quagmire of legal difficulties. Legal Talk interviews New York's leading co-op/condo attorneys to find solutions, and get some guidance, on these challenges. For more co-op and condo insights, sign up to receive Habitat's free newsletters or become a Habitat subscriber today!

Send us a text

Serving on your co-op or condo board can be a terrific experience, but it can turn into a personal nightmare if you or your board acts improperly. There are many legal protections, however, and Geoffrey Mazel, partner at Hankin & Mazel, provides an overview of what they are and the precautions you need to take. Habitat’s Emily Myers conducts the interview.

Key Takeaways for Board Directors:

1. Basic Protections
• Board members are protected through multiple layers including NY State statute, case law, and co-op bylaws
• The Business Corporation Law provides indemnification for board members
• The Business Judgment Rule offers protection when acting within authority, in good faith, and following proper procedure

2. When Protection May Not Apply
• Intentional wrongdoing or acts without authority
• No-bid contracts without proper board approval
• Discrimination against protected classes
• Conflicts of interest that aren't properly disclosed
• Actions that violate the proprietary lease

3. Best Practices for Avoiding Liability
• Hold proper board meetings with minutes and formal votes
• Consult legal counsel before making sensitive decisions
• Disclose any conflicts of interest and recuse when necessary
• For purchaser rejections, ensure:
- Full board review and vote (not just committee approval)
- Documentation of legitimate reasons for rejection
- Proper minutes and record-keeping

4. Potential Consequences
• Personal financial liability
• D&O insurance may defend but not indemnify in certain cases
• Punitive damages in discrimination cases aren't covered by insurance

The business of running a building is demanding work that requires making endless decisions — some that can quickly lead your board into a quagmire of legal difficulties. Legal Talk interviews New York's leading co-op/condo attorneys to find solutions, and get some guidance, on these challenges. For more co-op and condo insights, sign up to receive Habitat's free newsletters or become a Habitat subscriber today!