If you’re buying or selling a co-op or condo in New York, the building has a say in the sale. Knowing what boards look for helps you avoid delays and surprises.
Co-op boards
In a co-op, you buy shares in the corporation that owns the building, so the board must approve every buyer. Boards can be strict, and each building sets its own rules.
What’s usually in a board package
- The purchase application and signed contract
- Recent tax returns, pay stubs, and bank and investment statements
- A financial statement listing assets and debts
- Your mortgage commitment letter, if you’re financing
- Personal and professional reference letters, and often a landlord reference
- Consent to a credit and background check
Common financial requirements
- Down payment: many co-ops require 20% or more.
- Debt-to-income: boards often want monthly housing costs plus debts to stay under a set share of income.
- Post-closing liquidity: savings left over after closing, often enough to cover one to two years of mortgage and maintenance.
The interview and decision
If the package is accepted, the board usually interviews the buyer. Review can take several weeks. Co-op boards generally don’t have to give a reason for rejecting a buyer, but they can’t discriminate based on any class protected by fair housing law.
Condo boards
In a condo, you own your unit as real property, so the process is lighter. Most condos have a right of first refusal, meaning the building can buy the unit on the same terms. In practice, boards almost always waive it after reviewing a simpler application. Condos also tend to allow more flexible financing and subletting.
Tips
- Buyers: ask for the building’s requirements before you make an offer, and start collecting documents early.
- Sellers: share the board’s requirements with buyers upfront so you don’t lose months to a buyer who won’t qualify.
We help buyers assemble complete, well-organized board packages. Contact us, or read Condos vs Co-ops.