Leni Cummins is quoted in a New York Times “Ask Real Estate” column responding to a question regarding who has legal rights to co-op spaces (i.e., a backyard) when ownership and boundaries are unclear. If the backyard is part of the unit, the co-op board cannot require the buyer to pay a license fee to use it. “In fact, if it is part of the unit, the monthly maintenance assessed to the unit would technically cover the cost of the backyard, and any additional amount the board would attempt to collect from you would be tantamount to double-dipping,” advised Leni.

The board may be trying to correct a mistake from the past that predates the seller’s occupancy. If the backyard is not part of the unit, the co-op may have the right to license its use, though it raises suspicion as to why the board is introducing the licensing agreement now. The board is likely trying to generate income for the co-op, but the buyer must consider that the license may be revoked at a later date, rendering the yard unusable. The buyer’s broker can ask the seller’s broker to inquire with the board regarding its basis for imposing the fee and why they are choosing to implement it now.

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