Getting Co-op Board Approval in NYC
What exactly does co op board approval entail for home buyers and sellers in NYC? When do you find out about coop board approval and who will hear about it first? We’ll explain everything you need to know about the co op board approval process and even show you a sample co op board approval letter in the following article.
What Is Co op Board Approval?
Co op board approval is the formal acceptance of a co op apartment purchaser’s board application and a formal notice that the buyer has passed the coop board interview. Co op board approval means that the coop board has not only reviewed and accepted the buyer’s purchase application, but has also agreed to approve the buyer as a future resident of the building after meeting them in person at the coop board interview.
The Final Step
Receiving co op board approval means the toughest part of buying a coop in NYC is done. All you’ll need to do is to satisfy any remaining conditions required by the co op board, such as putting a certain amount of money into escrow if you have low post closing liquidity.
Note: It is not necessarily common to see additional requirements post co op board approval, but if a building has strict co op financial requirements and you barely qualify, they may indeed make you jump through a few more hoops such as putting a few months’ worth of maintenance into escrow.
When Do Buyers Get Co op Board Approval?
Buyers will receive notice of the coop board’s approval after they have completed the coop board interview. How much time it takes to receive co op board approval post interview will vary depending on the building. However, some lucky buyers will receive an informal, verbal co op board approval at the end of the interview.
Don’t expect this to be the norm however, even if you had a really good interview and felt a lot of rapport with the board. It’s more common to have to wait at least a few days to receive a formal written notice of co op board approval or co op board rejection.
If a coop board is divided over your application, perhaps because your personal financials are on the cusp of being acceptable, it may take much longer to receive a decision on coop board approval.
It could take weeks for the board to decide and come back to you, and they may come back to you with a requirement to put money into escrow or to purchase with a higher down payment vs an outright decision.
So be prepared for a longer wait time if you feel like you barely qualify per the co op’s financial requirements!
Who Gets Notified of Co op Board Approval?
The managing agent of the building will be the first to hear from the board regarding their decision. Once they have the board’s decision, the managing agent will send around a formal notice to the attorneys and seller’s broker. This notice is typically sent via email today, though the letter itself will usually be attached as a PDF file.
Who Gets Notified First?
Therefore, it will usually be the seller’s broker or the real estate attorney who will get in touch with the buyer regarding the board’s decision. Who the managing agent sends the formal notice to can vary depending on whose contact information they have on file.
However, it’s more common for the real estate listing agent and the seller’s attorney to know the seller’s building management better.
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Disclosure: Hauseit (https://www.hauseit.com) and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. The services marketed on Hauseit.com are provided by licensed real estate brokers and other third party professional service providers. Hauseit LLC is not a licensed real estate broker nor a member of any multiple listing service (MLS).
