On March 18, 2026, New York State and New York City Bar Associations adopted a standardized agreement for alterations in New York City. The agreement is designed for cooperative buildings, not condominiums, but is being pushed at condominiums as well. This is a major weakness, and condominium boards and managers should be cautious using this agreement. Condominium boards and managing agents should not attempt to use this agreement as it will not comply with the condominium declarations and by-laws.
None of the terminology in the Standardized Agreement, such as “shareholder,” applies in the condominium. The assumptions on transfer of alteration agreements, which are based on ownership of shares, not real property, are not applicable to condominium unit owners. Condominiums have real property deeds — there are no shares to register. If there is a document that needs to transfer, it must “run with the land,” not be registered with the shares.
Ownership remedies in the Standardized Alteration Agreement are based on breach of lease, additional rent and eviction from rental property. None of that applies in a condominium. Condominiums are governed by a declaration and by-laws. Condominium owners are entitled to demand the rights contained in their condominium documents. The board does not hold leases and evictions are based on the condominium documents, not a breach of the lease.
“Additional rent” does not exist in a condominium.
Another example relates to access to units. In many cooperative buildings, board members may enter shareholder apartments uninvited at any time. That is not the case in a condominium. Board members who enter units without permission or do so by coercion of unit owners are in breach of their fiduciary duties and are guilty of trespassing. Inspection rights in condominiums are set forth in condominium documents, and the board is powerless to alter those provisions absent a modification of the declaration by a two-thirds majority vote of the unit owners.
Condominium boards and managing agents have less authority over interior renovations, particularly finishes, than in a cooperative apartment. Any dispute over work must be addressed by injunctions or liens for common charges, not eviction or breach of a lease. That specifically means that “additional rent” is not available in a condominium. If the condominium is not using the applicable building code as the standard or lacks a basis for its position in condominium documents, it will not obtain judicial relief.
Condominiums must ground all positions vis à vis a unit owner in the condominium declaration and by- laws. Terms such as “additional rent” are meaningless. There are common charges, that must be proportional. Condominium boards may not seek “deposits” for “additional rent” and retain the money for common use — that violates the proportional requirements for common charges in condominiums.
Condominium documents typically contain provisions giving the board control over the common element mechanical systems and allow the board to ensure that connections to common element systems are approved by the board and be consistent with the applicable provisions of the building code. This control does permit boards in condominiums to prohibit so called “wet over dry” installations.
Insurance is another area that is governed by condominium declarations and by-laws. Unit owners are required to carry certain insurance in condominiums at levels specified in the declaration and by-laws. Boards should ensure that all units have the required insurance. Condominium boards should not be imposing insurance obligations without it being spelled out in the declaration or by-laws.
Likewise, the indemnification provisions in the Standardized Agreement are not workable in a condominium. The concept of indemnified parties based on shareholders is not applicable. The indemnified parties in a condominium would be the board of managers, the managing agent and condominium association. This cannot be varied by fiat by the “Corporation’s Designated Engineer.” However, any licensed professional retained by the board of managers to review drawings may be an indemnified party.
Before any use is made of the Standardized Agreement in a condominium, it would need to be substantially revised and redrafted to account for the following: removal of all references to leases, lease provisions and lease-based mechanisms and replaced with provisions grounded in the condominium’s declaration and by-laws; change the parties to condominium and unit owner; ground all fees, insurance and indemnification in the declaration and by-laws; ensure that obligations run with the land and any plan review must be grounded in either the building code or the declaration and by-laws.
This column presents a general discussion. This column does not provide legal advice. Please consult your attorney for specific legal advice.
Carol A. Sigmond
Partner
Nossaman LLP
12 East 49th Street|22nd Floor
New York, NY 10017
