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.
A typical NYC co-op board application requires applicants to submit three to six letters of personal and professional reference. It’s essential to request the Board Package Reference Letter as soon as you have a fully executed purchase contract. To be on the safe side, consider requesting more letters than the required amount, as some of your references may be late in submitting their letters or may not provide the content you would like.
Also, keep in mind that even if you are purchasing a condo in NYC, you may still need to provide reference letters. This article includes sample reference letters—professional, personal, employer, and landlord—specially tailored for NYC co-op applications, along with additional information, tips, and tricks for preparing these letters.
In a typical NYC co-op building, applicants are usually required to submit three to six business or personal reference letters, along with separate landlord and employer reference letters.
The exact requirements can vary depending on the specific co-op building and types of reference letters:
Some board applications specify clear guidelines for reference letters (e.g., no family members), while others are more flexible regarding their requirements.
If you’re unsure, it’s always a good idea to ask your buyer’s agent to clarify any specific reference letter requirements directly with the listing agent or managing agent.
Here are a few real examples of the reference letter requirements from the board applications of various co-op buildings in New York City:
Pre-war co-op in Concourse, Bronx
Boutique pre-war co-op located in Chelsea, Manhattan
Requirements for purchasing a unit can vary significantly from building to building. Smaller walk-up buildings or self-managed cooperatives often have more relaxed criteria when it comes to the purchase application and reference letters. If you’re fortunate enough to be buying a sponsor unit, you can avoid the board approval process entirely.
However, even if a complete purchase application and attendance at a coop board interview are not required, you might still need to complete a simplified application for a sponsor sale.
While many people believe that only co-op buildings in New York City require purchase applications, several condominium buildings also request that buyers complete one. Typically, the condo board application is less rigorous than that of a comparable co-op building. However, your condo board may still require references and/or letters of reference.
If you are purchasing a co-op apartment directly from a sponsor, it is unlikely that you will need to submit reference letters. Nevertheless, buying a sponsor unit does not guarantee that you won’t have to complete a board application. Even though a co-op may not reject your application for a sponsor unit, they might request an abbreviated board application to verify your assets and conduct credit and criminal background checks.
If you’re buying your neighbor’s apartment, your co-op building will likely still require you to submit an abbreviated board application.
There is a concerning trend where more condominium boards are requesting reference letters and creating board packages that can be as lengthy as those for co-ops.
By doing this, condo boards may come across as unreasonable, akin to co-ops that crave power. To avoid such problematic buildings, it’s wise to request a copy of the condo’s purchase application early in the process. You can ask the listing agent for a copy of the application before placing an offer, even though buyers typically receive the application only after they have accepted their offer.
The time you have to request and assemble your reference letters will depend on whether you are financing your purchase or paying all cash. If you are financing the purchase, you’ll have a bit more time because you’ll need to wait for your mortgage commitment letter before submitting your application.
Typically, receiving a commitment letter from your bank takes about 3 to 5 weeks.
If you are making an all-cash purchase, you can submit your overall board application much more quickly since you don’t need to wait for a mortgage commitment letter.
Regardless of whether you are financing or paying in cash, it’s advisable to request your reference letters as soon as you have a fully executed contract and have received the co-op’s financial requirements.
Consider requesting more than the minimum number of reference letters. This helps mitigate the risk of delays or potential issues with a less-than-stellar reference from any individual. Lastly, please note that your purchase contract may require you to submit the board application within a specified number of days after receiving your mortgage commitment letter.
There is no strict requirement for the length of a co-op reference letter. However, a board package reference letter should be between three paragraphs and a page and a half in length. Reference letters that are shorter than three paragraphs may be subject to additional scrutiny. Those that are too long might lose their effectiveness.
Ultimately, reference letters should be both insightful and concise. Prioritize quality over quantity when determining the appropriate length of a reference letter.
The primary purpose of the co-op reference letters you submit is to help the board gain a qualitative understanding of you as a person and how you would interact with and contribute to the co-op community.
A typical NYC co-op purchase application will require 1 to 4 professional business reference letters for each applicant.
The content of a business reference letter should cover the following points:
The purpose of a landlord reference letter is to verify that you have consistently paid your rent on time and in full.
A typical landlord reference letter should include the following details: the address of the rental unit, the duration of the tenancy, and the amount of rent paid. It should also indicate whether you have been punctual with your rent payments.
Suppose your co-op purchase application does not specify what should be included in the landlord reference letter. In that case, we recommend providing as much detail as possible, including all of the items mentioned above.
Even if your landlord is a friend or family member, it shouldn’t affect your co-op board application.
If you are renting from a friend or family member, ask them to provide a letter that includes the following details: the property’s address, the duration of your stay, the amount of rent you pay, and whether you consistently pay your rent on time.
If you are living rent-free, request a letter from a friend or family member that states your address, the duration of your stay, and confirms that you are not paying any rent. This letter would be similar to a signed gift letter you would obtain if a family member were helping you with a down payment for a mortgage.
An employer reference letter is distinct from the professional reference letters we discussed earlier.
The primary purpose of an employer reference letter is to verify factual information, such as your place of employment, dates of employment, the amount and nature of your compensation, and specifics regarding your current role or position.
Since an employer reference letter provides non-qualitative data about your relationship with the company, it is usually issued by the Human Resources (HR) department. Therefore, the easiest way to obtain an employer reference letter is to request one from your HR contact. If you work for a small firm without a dedicated HR department, you should ask someone who can confirm the details of your employment.
Additionally, your mortgage banker or broker will need to verify your employment through a phone call, typically occurring two days before closing. A representative from your bank will call the phone number you provided for your employer to confirm verbally that you are, in fact, still employed.
This process can become problematic if fired or laid off before closing. Depending on how well your lawyer has protected your interests in your purchase contract, you might still be able to recover your contract deposit.
If you are self-employed, it is essential to request professional reference letters from individuals with whom you have worked in a professional capacity. Additionally, if you do not have a traditional employer, a typical NYC co-op board package will require some extra financial verification items beyond the standard REBNY financial statement, bank statements, and bank verification letters.
These additional items may include a notarized letter from your accountant, profit and loss statements from your business, and/or the operating agreements or formation documents for any legal entities through which you conduct business.
As a co-op candidate in New York City, it’s crucial to follow the board application instructions carefully and submit a complete board package on your first attempt. If you submit fewer references than required, the managing agent will reject your application and return it to your buyer’s agent for corrections, meaning the board won’t have the opportunity to review it.
If you believe you lack sufficient people to provide references, consider asking your buyer’s agent to confirm the specific requirements for reference letters with the building’s managing agent.
There is a possibility that reference letters from family members may be acceptable, and the board might only require one set of reference letters for both you and your significant other, rather than separate sets for each of you.
Whether you need to submit original reference letters with ink signatures depends on the specific requirements of your building’s purchase application. When the board package instructions specify “original” reference letters, your references will need to mail you the signed original letters.
Suppose the application does not specify a requirement for original letters. In that case, it’s advisable to have your buyer’s agent confirm the specific requirements with the managing agent before submitting the board package.
Suppose you have requested a NYC buyer agent commission rebate and are working with an experienced buyer’s agent. In that case, they will take the initiative to collect and assemble all necessary original documentation from you and the seller.
Suppose you are selling your property as a For Sale By Owner (FSBO) in NYC, and an agent does not represent your buyer. In that case, you will need to take the lead in reviewing your buyer’s board application and coordinating the collection of all original documents.
The purpose of reference letters is to highlight your positive qualities and enhance your overall candidacy for the co-op position. However, poorly written reference letters can significantly weaken your application.
When requesting your reference letters, consider the following guidelines:
