Property Ownership

When a NYC co-op board rejects a prospective buyer, which of the following is TRUE?

AThe board must provide written reasons for the rejection
BThe seller's broker is entitled to a commission even if the board rejects the buyer✓ Correct
CThe rejection is always unlawful under the NYC Human Rights Law
DThe rejected buyer can automatically demand a hearing before the DOS

Explanation

In New York City, co-op boards have broad discretion to reject purchasers without giving reasons. Brokers typically earn their commission once a ready, willing, and able buyer is produced, subject to co-op board approval clauses in listing agreements.

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