Can you sell apartments when you sit on the board?

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

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

Clockwise from top left: John Gomes, Ronita Kalra, Eric Beniam and McKenzie Ryan (Credit: Getty Images, iStock, Wikipedia)

“We’re putting ourselves in situations where anything is possible”: Real estate agent’s killing rattles industry

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

157 West 57th Street (Credit: iStock)

One57 condo with reduced ask tops a slow week of luxury contracts

Clockwise from top left: 730 Fifth Avenue, Unit #PH21; 730 Fifth Avenue, Unit #18A; The Pierre, Unit #3101; and The Park Imperial, Unit #64

Priciest homes listed last week include $60M pad at Crown Building

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

56 Leonard Street (Credit: iStock)

He invested more than $130M into 4 Manhattan condos. Now he’s taking a hit

Due to relatively high income levels and low transportation costs, New York City is the eight most affordable of 20 major cities (Credit: iStock)

NYC is the 8th most affordable big city in America*