lost stock certificate (sale, lease, coop)

[csaunders234]

i am about to close on the sale of my coop and cant find stock certificate from 21 years ago. the management company says that i have to take out a surety bond at a cost of 2% of the selling price which comes to $6500.....to protect them from a law suit if someone finds the certificate and makes a claim for the coop after it has been sold . This is outrageous...can they really get away with this...or can i get around this somehow. Please let me know

[Pruzhany]

Ask them where it states that in ther bylaws? BTW are they charging you a flip tax?

[pureistheword]

I assume you no longer have a mortgage on it (if so the bank holds the original til the loan is paid off).
Some coops might take an affidavit of lost certificate, but I have heard of having a bond, for their protection.

[jcoltrane]

Why don't you check with the attorney who handled the original transaction??????

BTW, what is so "outrageous"? You need to prove that you own something before you can sell it. Funny thing, its the management company that wants the bond----have you informed the purchaser!!?? There is going to be an issue; specifically if the purchaser is mortgaging the property. The lender w/o question will need to be assured the property is free and unencumbered.

You have been wholly irresponsible, so now you have to pay the cost. Why whine?

Have you spoken with your attorney regarding the issue? In any event, if the certificate cannot be found, then you simply need to request the corporation issue you a replacement certificate, in which case you should speak with the corporation's attorney.

Your attorney s/b be capable of handling everything.

[JessR927]

I work in property management and have never heard of such a thing, although I work in Westchester and not NYC. Usually in this case, you pay the transfer agent to draw up a "lost stock & lease affidavit." As another poster said, if you had a mortgage, the bank would be holding the original stock and lease. Check with them.