How Does Condo Board Approval Work in NYC?

Many buyers are surprised to hear that condos do have a board application which honestly is in many cases quite similar to what you'd submit in the case of a co-op. We’ll demystify the topic of condo board approval in this video.

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When it comes to board applications, the paperwork is very similar whether you're buying a condo or co-op. However the main difference with condos and co-ops and the board application is that a condo cannot just reject you without recourse as is the case with a co-op. A co-op can just reject you and send you on your way and there's nothing you can really do about it.

There's nothing in exchange that the co-op has to do if they choose to reject you. Now in the case of a condo a condo can only reject you as a buyer if they decide to utilize their right of first refusal. This would obligate the condo to literally buy the apartment at the same terms price and such that you have agreed to with the seller. Now for obvious reasons condos are usually not in the business of buying individual apartments within the building. As a result most industry participants view the right of first refusal process as more of a formality.

The condo will almost always “waive their right of first refusal” and that is in fact what the condo board application process is designed to do. When you submit that application the condo usually has 20 to 30 days a mandated timeline to which they must respond and provide you with that waiver of right of first refusal. Once that waiver is issued you are then authorized by the building to proceed to the closing. So you might be wondering well if the condo can't really reject me without buying the apartment can I just not submit the application? Do I have leverage? Can I submit like half of the application?

The answer is that you really are fully obligated to submit all requirements for the board package as outlined by the condo. The reason you are obligated to is that although the condos technically has that 20 to 30 day timeline to respond if you don't submit a thorough application on day say 29 of that clock they can respond and say hey we're missing document a or document at which point that clock actually resets back to zero.

So if you really piss off a condo board and you try to behave inappropriately they will make your life living hell and they will delay your ability to close in 30 day increments potentially multiple times. So the big picture is that whether you're buying a condo or a co-op in new york city just be prepared to go through the process play by the rules and if you do it's a very smooth and seamless scenario even in the case of a co-op.
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https://www.hauseit.com

Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Est 2014.

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