Under most proprietary leases and applicable law, cooperative boards are free to disapprove an application to purchase a unit for any reason or no reason – so long as the board does not act for an unlawful reason, such as discrimination against one of the city’s numerous “protected” classes. Therefore, lawsuits challenging a board’s rejection of an application are generally dismissed without a trial. However, “generally” does not mean “always.” A recent lawsuit illustrates the point. Read the article……………………….
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