A Shareholder in a recent correspondence noted to Management that the shares attributed to their unit were too many in the Schedule A of the Offering Plan. Apartments that were attributed garage spaces had an extra 50 shares built into their proprietary lease and stock certificates, but this is the one apartment that had the extra shares in the unit but no garage to attribute the shares to.

Roughly 30-years after the building went Cooperative, this was noticed by the Shareholder. At the time of the purchase of the original shares from the Sponsor, an attorney looking into the building’s Offering Plan and supporting documents would have picked up on this discrepancy with a bit of due diligence. The Shareholder, having paid maintenance for a period of 30 years was only now looking into the perceived extra maintenance that they have been paying. There is no way, now, to adjust the shares in the Schedule A as that would change the entire layout of shares within the Cooperative as a whole.

With a bit of due diligence and paying attention to the details while purchasing the apartment, this mistake could have been avoided. They would not have been able to change the Schedule A but they would have been able to step away from the purchase in the first place, before the financial damage was done.