Since the legislature gave birth to the first condominium laws, very few issues have had as much attention and confusion as boards’ concerns about the extent of unit owners’ access to inspect the management books and records. Condominiums have been left without law or a statute to handle these questions and many times, all out civil wars ensue.
Just this year, the Appellate Division, First Department handed down its first decision on the subject, albeit limited to its facts. This article will analyze the state of the law and attempt to provide guidance to the practitioner and members of boards of directors.
Analyzing Condominium Records
Because most condominiums exist as unincorporated associations and are not subject to the business corporation law, any rights of owners as to the inspection of books and records, arise out of the building’s corporate documents, the common law and RPL § 339-w which states that:
the manager or board of managers, as the case may be, shall keep detailed, accurate records, in chronological order, of the receipts and expenditures arising from the operation of the property. Such records and the vouchers authorizing the payments shall be available for examination by the unit owners at convenient hours of weekdays. A written report summarizing such receipts and expenditures shall be rendered by the board of managers to all unit owners at least once annually.
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