Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
Whether you’re buying or selling a co-op apartment in NYC, a board rejection is never a win for anyone. The reality about co-ops in NYC is that securing board approval is largely beyond
your control. Boards can reject an applicant for any reason, or even without one. Let’s discuss Co op Board Approval in NYC.
Moreover, co-ops rarely disclose the reasons behind a rejection. Regrettably, it is not possible to eradicate all ambiguity concerning co-op board approval in New York City. However, you can mitigate a board’s reasons for rejection by understanding the principal causes of rejection and ensuring that neither you nor your buyer falls into any of those categories.
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 co-op 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.
Receiving co-op board approval means the toughest part of buying a co-op in NYC is over.
All you’ll need to do is 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.
The co-op board’s approval after completing the interview. The approval timeline varies by building. Some fortunate buyers may receive informal, verbal approval immediately after the interview, but this is uncommon, even if the interview goes well.
Typically, you need to wait several days for a formal written notice of approval or rejection from the co-op board. If the board is divided over your application—perhaps because your financials are borderline—it might take significantly longer to get a decision.
The board might take weeks to decide and respond, possibly requiring you to place funds in escrow or make a larger down payment rather than giving an immediate decision. Be aware that you may experience a longer wait if you just meet the co-op’s financial requirements.
The building’s managing agent will promptly receive communication from the board regarding their decision. Upon receipt of the board’s decision, the managing agent will distribute a formal notice to the attorneys and the seller’s broker. This notice is commonly sent via email today, with the official document typically attached as a PDF.
Typically, the seller’s broker or real estate attorney will reach out to the buyer about the board’s decision. The managing agent’s formal notice may be sent to whoever has their contact information. Nevertheless, the listing agent and the seller’s attorney usually have a better understanding of the building management.
Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.
