The Nest

NestApple's Real Estate Blog

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.

REBNY Financial Statement Template – Downloadable 2023

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Does the listing agent ask you to submit a REBNY form Financial Statement in NYC with your offer to buy an apartment? A REBNY form was only provided for co-ops in NYC real estate market. However, this financial disclosure form became a document accompanying all offers for properties listed in the Real Estate Board of New York’s RLS. Here is a REBNY financial statement spreadsheet.

It allows you to quickly complete your REBNY Financial Statement and use it in every offer we place. The REBNY Statement is almost always required when submitting an offer on a co-op apartment in NYC. This Statement is a high-level summary of your assets, liabilities, income, and projected expenses. This lets the listing agent and seller ascertain whether you meet the co-op’s financial requirements. These financial requirements usually consist of the debt-to-income ratio and post-closing liquidity.

This financial disclosure form has become a de facto document accompanying all offers for properties listed in the Real Estate Board of New York’s Residential Listing Service (commonly referred to as the RLS in NYC).

Buildings in NYC - real estateDownload our REBNY form template.

1. Is a REBNY Financial Statement required in NYC?

REBNY Financial Statement in NYCTechnically, New York State law does not require a REBNY residential form financial statement with an offer. However, it has become the standard. All offers submitted to a listing agent (with or without a form) are required to get forwarded to the seller.

Then, if you want the seller to take your offer seriously, the answer is yes. You should include a REBNY statement.

Co-op board rejections frequently happen in NYC, and the last thing you want is the denial to result from the buyer not passing all of the board’s financial requirements. Therefore, as a buyer, you should complete the REBNY form financial Statement even if you feel it’s somewhat invasive.

Generally, you will not request the buyer to include a REBNY Statement, co-op sponsor units, condos, or new construction. A pre-approval letter, proof of funds, and your offer level (price, % down, and contingencies) will suffice for these situations.

2. Why do I need to fill it out?

real estate contract: REBNY Financial Statement in NYC

Sellers use the form and listing brokerage firms to evaluate the relative strength of offers. They determine who remains the most financially qualified and likely to pass the co-op board. An economically stable candidate is good because it can help make you stand out, especially in a bidding war.

Most New York City apartment inventory is co-op apartments. Therefore, it is incredibly likely that the buyer’s broker will ask for this Statement.

3. What does this REBNY Financial Statement include in NYC?

new york: coop board interview in NYC - REBNY Financial Statement in NYC

The REBNY form combines a personal balance sheet and an income statement for those familiar with accounting.

  • The balance sheet asks you to list all assets (cash, stocks, bonds, properties, etc.) and liabilities (loans, mortgages, etc.).
  • The income portion asks for your income and any co-applicants income. You must be specific and break down your income by salary versus bonus. To make your income as strong as possible, include other income sources, such as investments (dividends and interest). If you have any questions, feel free to ask NestApple.

Working with an experienced buyer’s agent will help ensure you are fully informed about each co-op’s nuances and requirements. I don’t want to invest too much time in something that may not fit.

How to Complete the REBNY form: REBNY financial statement instructions

a) Assets:

Under the assets section, you must fill in the itemized schedule and list all liquid and non-liquid assets for yourself and any co-applicant (spouse, significant other, etc.). When a listing agent reviews the assets section of the REBNY financial statement, they will be looking to see if you have enough liquid assets to cover the following items:

  • Down Payment – usually a minimum of 20% for most co-ops
  • Closing Costs – 1% to 2% for co-ops in NYC
  • Post-Closing Liquidity – 12 to 24 months’ worth

Most co-ops have specific guidelines for the amount of post-closing liquidity a new shareholder (purchaser) should have after closing the apartment. If you buy all cash, ‘post-closing liquidity’ means the number of liquid assets available to cover the monthly co-op maintenance.

If you are financing the unit, ‘post-closing liquidity‘ means the number of liquid assets you have to cover the monthly mortgage and maintenance bills. Co-ops often look for anything between one to three years of post-closing liquidity.

In some cases, the amount the board is looking for is also related to how substantial your debt-to-income ratio is.

b) Liabilities:

Under the liabilities section, you itemize any debt you currently hold, including the following:

  • Notes Payable
  • Mortgages
  • Unpaid Taxes
  • Installment Accounts (i.e., Auto Loans)
  • Loans on Life Insurance Policies

It’s essential to list all outstanding debts you may have. These debts and corresponding monthly debt servicing payments will impact your debt-to-income ratio. If you do not accurately list your liabilities in the co-op board application, the Management Company will catch you once the building runs your credit since these debts appear on the report.

c) Sources of Income / Monthly:

The income section is critical because it allows a listing agent to assess your monthly debt-to-income ratio. You should list all sources of income, including base salary, bonuses, dividend income, real estate income, and any other income (stipends, etc.) Suppose your income varies yearly, and your bonus or overtime income is unpredictable.

In that case, you need to seek clarification from the co-op’s managing agent on how they will interpret your income. Some buildings may use a two-year average when calculating your debt-to-income ratio, impacting whether a co-op board will approve you.

Here is the formula for the debt-to-income ratio:

Debt to Income Ratio (%) = (Monthly Mortgage & Maintenance) / Monthly Income

d) Projected Expenses / Monthly:

The projected expenses section of the REBNY form financial spreadsheet is where you list your estimated monthly maintenance and mortgage amounts for the co-op you’re submitting an offer on. You must also list recurring monthly expenses, such as car or student loan payments.

Because your projected monthly maintenance and co-op mortgage bill vary depending on which unit you are bidding on, you or your buyer’s agent must ensure that this section is updated for each apartment you submit an offer on.

The most efficient way to do this is to provide your buyer’s agent with a completed Excel version of your Financial Statement. Your buyer’s broker can update this section for each offer you submit and regenerate the Statement for inclusion with your offer.

4. When should I submit the REBNY Financial Statement?

broker meeting clients - Investment property - Nestapple agents helping you save money on your investment property.We recommend completing this form if you plan to buy in New York. Also, secure a mortgage pre-approval. When you find the apartment you love, you aren’t scrambling to get your documents ready to offer to your agent. No matter what agent you choose, or if you decide to go alone, the listing agent will likely still ask you to fill out this form.

5. What if I don’t want to fill it out?

real estate agentMany times people express they are uncomfortable disclosing personal and financial information. Unfortunately, if you don’t include it, you may put yourself at a significant disadvantage. In the case of co-ops, the board application process is excruciating and intrusive. These items will eventually come up.

It is good to disclose your financial information clearly and honestly upfront. If you can’t afford a co-op (or condo), it is best to know early on to move on to the next place. Generally, the more transparent and clear your offer is, the more likely it will stand out from other buyers.

6. When should I fill out the REBNY Financial Statement spreadsheet?

Suppose you are planning to buy in NYC. In that case, we recommend that you complete this form ahead of time and secure pre-approval. This way, when you find the apartment you love, you aren’t scrambling to prepare documents to make an offer with your agent.

No matter what agent you choose or if you decide to go alone, you will still need to fill out this form. It is a great way to show that you meet the financial requirements of a building.

7. Do You Need To Provide Backup For A REBNY Financial Statement spreadsheet?

When submitting bids, a REBNY financial statement spreadsheet doesn’t require backup, and it simply gives the seller and listing agent a ballpark sense of your finances. If the seller is unsure the board approves you, they may return and ask for additional detail and documentation. For example, the board requires a debt-to-income ratio under 25%, and you are at 26%.

If a substantial portion of your income is from an annual bonus, the listing agent may ask for your bonus for the last three years to ensure it hasn’t fluctuated too much. Whatever the request, your agent can tell you if it is reasonable and relevant to the proposed transaction.

Written By: Georges Benoliel

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.

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