Can you sell apartments when you sit on the board?

There's no law preventing you, but your colleagues are judging

TRD WEEKEND EDITION /
Jan.January 27, 2018 03:57 PM

(Credit: Mike Durkin/Wikimedia Commons; Pixabay)

The honor system is apparently what it all comes down to when the question of whether it’s right or wrong to work as a broker and sit on, or lead, a co-op board.

The issue is coming to a head at one Forest Hills co-op where broker, and owner of Superior Services Realty, Belal Mohd is president of the board and, according to the New York Times, has sold 60 apartments over the past 10 years.

Owners claim they had difficulty selling their apartments when using a broker other than Mohd because the board would turn down buyers and The Times also noted several of Mohd’s listings for the building claimed the building had a “no hassle board.”

Unfortunately for those claiming wrongdoing on the part of Mohd, no law prohibits his actions — although some buildings internally prevent brokers from participating in their boards. That said, the legal community is crystal clear on their stance: don’t work in a building when you’re sitting on the board.

“A bad person can take advantage of the system,” partner Aaron Shmulewitz of Belkin Burden Wenig & Goldman told the Times.

The Real Estate Board of New York’s counsel, partner Neil B. Garfinkel, agreed telling the Times agents and brokers should not serve on boards if they’re also selling property in the building as a conflict of interest is unavoidable.

Mohd, for his part, wrote the Times an email calling his detractors a minority with “malicious intent” and “false allegations.” [NYT]Erin Hudson


Related Articles

arrow_forward_ios
(Illustration by Dave Murray)

The squeeze on resi brokerages is forcing consolidation, cooperation

DSS commissioner Steven Banks with 148 West 124th Street (left) and 79 East 125th Street (right) (Credit: Google Maps and Getty Images)

City will convert 14 apartment buildings into housing for homeless

From left: 55 East 74th Street, 9 East 82nd Street, 1 Central Park South, 78 Irving Place with Adam Neumann and 111 West 57th Street (Credit: StreetEasy, Wikipedia, Getty Images)

Adam Neumann’s triplex, Russians’ Plaza pad were priciest homes listed last week

3 East 69th Street and 252 East 57th Street 

With asking prices in freefall, luxury market sees strong week

Keller Williams CEO Gary Keller

Keller Williams will cut off agents who leave

Wall Street bonus season is the stuff home sellers’ dreams, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. But in a buyer’s market that vision may be more like a mirage (Credit: iStock)

Here’s what Wall Street bonus season means for real estate this year

Adam Neumann and 78 Irving Place (Credit: Getty Images and StreetEasy)

Adam Neumann is asking $37M for Gramercy Park triplex

You know those other people that brokers always tell you want the same property you do? Turns out they all definitely exist.

Small Talk: I Am the Other Person Interested in Buying This Home

arrow_forward_ios
Loading...