Leni Cummins discusses a co-op's oversight with alteration pass-along charges, resulting in costly consequences in Habitat Magazine. In the article, Leni stresses the importance of securing signed assumption documents for alterations to protect co-ops, various methods of implementation, careful recordkeeping, and improved information sharing between parties involved.

A shareholder's apartment renovation led to an alteration agreement stipulating future owners' responsibility for alterations, even if they hadn't made the alterations. Years later, extensive damage from previous alterations prompted the board to request repair payment from the new owner, who had not signed the assumption agreement, leading to a $2.5 million expense for the co-op.

“What many directors don’t realize is that without an assumption contract with future buyers, those obligations will literally disappear into thin air,” Leni explains.

To read the full article, click here.