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If this is pursued legally I would think there is some law stating that they must have some legitimate reason---it can't just be "because we felt like it."
I already have a thread about this as I linked to, but I'm just updating that the board did indeed reject my application for approval to buy a condo in their complex. No reason given. They never called my references or my bank. I have no criminal history. It was a cash purchase and I have more than enough money to cover any future assessments or condo fees.
Did you, by any chance, refuse to answer their "invasive" questions on their questionnaire? If so, you should not be surprised that they rejected your application.
That might be a regional thing. In Florida, condo boards have a lot of power in situations like this.
I guess that's the case here. In NY, they only have the right of first refusal, which means they can either buy/rent from the owner themselves. Other than that, they don't have any power really.
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