The Real Deal New York

Using their powers for good?

Industry casts increasingly skeptical eye to brokers on co-op and condo boards

May 16, 2012 10:30AM
By Katherine Clarke

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From the May issue: In late 2009, the owners of 15 apartments at the Atelier in midtown filed suit against members of the condo board, including its president, Daniel Neiditch. They claimed that Neiditch, head of the brokerage River 2 River Realty, was using his influence to gain a monopoly on real estate deals there.

Neiditch had been directing all leasing and sales inquiries in the 42nd Street building to his company, they claimed in court documents, treating it as “his own fiefdom.” Owners who listed their apartments with an outside broker, the suit claimed, would never make a sale. [more]

  • ShadyAtelier

    Daniel Neiditch is also known to act as the attorney on deals he is brokering. Though he is not the only one I have ever seen do that, in my opinion it’s a clear violation of the Rules of Professional Responsibility for attorneys. There is no way for a client to waive the conflict. So, one person involved in a transaction is the broker, lawyer, and board member? That doesn’t sound fishy. Hopefully the DOS is looking into this activity.

    Further, though I’m sure they were represented by competent counsel, the owners at The Atelier should have at least had a shot at bringing a shareholder derivative suit in the name of the corporation. There are quite a few hurdles to jump through however.

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