I was asked these questions recently by a Manhattan co-op owner who felt that his co-op was assigned the wrong number of shares. Here is my response.
Deciding On The Number Of Shares An Art & A Science.
The number of shares on a Manhattan co-op are determined by unique factors such as floor level, size and level of light it receives. Dividing the shares is more an art than a science which makes it difficult for a co-op owner to challenge his or her allocated number of shares. No two real estate professionals will allocate shares in the same manner.
Reallocating shares can cause legal issues. There are tax implications for the building. Also the building has a finite number of shares. So if a shareholder wants to lower his number of shares then another shareholder would have to take them raising that shareholder’s monthly maintenance costs. Some proprietary leases require consent to make a change. That said it is unlikely other shareholders would consent.