The New York Times has called NYC co-op board packages “infamous” and “dreaded,” and for good reason.
The process of buying a co-op apartment in New York City is often one of the most challenging and labor-intensive aspects of real estate in the city. Co-op board packages can span hundreds, and sometimes even over a thousand pages, and preparing a co-op application is frequently cited as the most difficult part of the transaction.
Each co-op (and condo) building sets its own application requirements, so the process varies from building to building. However, there is generally a specific way the applications must be completed, especially regarding the financial statement and verification documents. Attention to detail is crucial.
The Co-op Purchase Application Process
1. Document Preparation:
Once the buyer completes their purchase application, the buyer’s and seller’s real estate brokers typically review it to ensure it’s accurate and complete.
2. Managing Agent Review: After the initial review, the application is submitted to the building’s managing agent. The managing agent runs a credit check and carefully reviews all documentation. If the application is incomplete or contains errors, the managing agent may not submit it to the co-op board for review. At this stage, if revisions are necessary, the buyer may incur additional processing fees, and the timeline can be delayed.
3. Co-op Board Review: Once the managing agent deems the application complete, they forward it to the co-op board. The board members review the application thoroughly—a process that can take anywhere from a few days to several weeks, depending on the building’s procedures.
4. Board Interview: If the co-op board is satisfied with the documentation, they will schedule an in-person interview with the prospective buyer(s). If the board schedules an interview, this is generally a positive sign, as most co-op board rejections occur before the interview stage.
5. Decision and Approval: After the board interview, the co-op board typically makes a decision within 24 hours. The buyer is usually notified of the board’s approval or rejection the day after the interview.
The Closing Process
Once the co-op board approves the purchase, the closing can usually be scheduled within one to three weeks, depending on the circumstances. If the buyer is making an all-cash purchase, the closing process may be expedited, requiring less time to finalize the deal.
Key Takeaways
* Attention to Detail: The co-op purchase application must be meticulously completed, especially regarding financial documents and verification. Any errors or missing information can lead to delays and additional fees.
* Interview = Good News: If you’re called for a co-op board interview, it’s typically a positive indication. Rejections usually happen before this stage, so an interview means you’ve passed the board’s initial scrutiny.
* Variable Timelines: While the managing agent and co-op board review periods vary, buyers should be prepared for the process to take several weeks or even months, especially if revisions are required.
* Expect Delays: Buyers should anticipate that the co-op board review and approval process may take time and plan accordingly for delays, especially if financing is involved.
If you need assistance with your NYC condo purchase application or co-op board package, please contact us.
DwellingsNYC is a team of purchase application and co-op board package specialists who help real estate brokers and buyers with their NYC co-op and condo purchase applications.
We are experts with the condo and co-op application process, with over 20 years of experience and more than 1,000 purchase applications reviewed and completed.