Buying a Co-op, Things that a buyer should know

Real Estate Agent with 1

When buying a cooperative apartment the buyers need to be aware that most corporations require a prospective purchaser to submit an application and this application could, or I should say WILL consist of the buyer submitting documents that contain personal and confidential information concerning the buyers employment history and finances.  Most likely the board will require a personal interview with the prospective buyer as well as all the people that will be residing in the apartment.  Trust me - this process is hard for any buyer and the scrutiny that a buyer under goes has been compared to having your finger nails pulled out one by one.  Ok, THAT might be a bit dramatic - but I kept you interested, didn't I?  

When dealing with prospective buyers of a co-op, as the listing agent/selling agent, I want to make sure that the applicant will qualify a board approval, before submitting or accepting any offers.  But, what if the agents have both checked and double checked out the applicant's and the application has been submitted and the buyers have gone before the board, to only find out that the buyers did not get approved?  It is earth shattering.

Up until this year the Co-op board's did not have to inform the prospective buyer why they were denied.  But as far as I know this past January, the State has declared that the ALL Corporation boards must inform the applicant why they were denied if that is the case. 

In the State of NY, discrimination is prohibited in Board application procedures and each board's application process must comply with the following laws:

The Federal Fair Housing Act

The Civil Rights Act

The New York State and New York CityHuman Rights Laws

There are 14 protected categories that an applicant can not be denied on:

  • Age
  • Disability
  • Partnership Status
  • Alien Status
  • Gender(including gender identity)
  • Race
  • Children(or childless state)
  • Lawful Occupation
  • Religion
  • Country of National Origin
  • Marital Status
  • Sexual Orientation
  • Creed
  • Military Status

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
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civil rights
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Mary Pope-Handy
Sereno Group Real Estate - Los Gatos, CA
CRS, CIPS, ABR, SRES, Silicon Valley
We only have a few co-ops in Silicon Valley. They are HARD TO SELL!! They are cheaper too. Are they less expensive in your marketplace as well?
Mar 27, 2007 06:28 AM #1
Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904
There is a Co-Op in the Bronx which also requires five personal reference letters from existing Co-Op members in good standing. This makes it very difficult for many "New" people to buy.
Mar 27, 2007 06:37 AM #2
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Christine Forgione

Associate Broker
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