The Cooperator’s article “Foundational Documents for Co-ops & Condos” states the importance of up-to-date and accurate foundational documents for co-ops and condos. In the article, Steve Troup, Chair of the Cooperative and Condominium Practice, discusses condominium declaration best practices, accuracy, amendments and potential problems. Steve states that the by-laws must be attached as an exhibit to the declaration and that the certificate of incorporation, by-laws, proprietary lease and offering plan comprise the governing documents of a co-op. He also noted that offering plans become basically obsolete when the project is sold out.

In the article, Steve comments on understanding the consequences of foundational documents errors. This can include “long, expensive and time-consuming litigation with unit owners where sticky issues of governing documents interpretation might require a trial” and the “general unhappiness of unit owners with their boards.”

The article also notes the importance of finding professional guidance. “An experienced co-op/condo lawyer,” Steve explains, “is able to provide a detailed analysis of the governing documents and recommend changes. It is crucial, however, that the board effectively communicates its experiences with inadequacies of the documents to counsel so that the revisions may be specifically tailored to each building and the recommended revisions are not just cookie-cutter Band-Aids.”

To view the full article, click here.