You may be wealthy, charismatic and well-connected. That’s still not enough to avoid the board’s approval process if you’re interested in buying a co-op. There is simply no way of getting around the sometimes nerve-racking screening process. If you’re interested in buying a co-op, below is an overview of what is in store for you during the co-op approval process.
Application: If your offer was accepted, you will receive an application. The application asks for basic information such as your current address, employment information and financial information.
Cover Letter: You also must provide a cover letter to introduce yourself. Don’t be afraid to sell yourself a little. Explain why you like the building and why you want to live there.
Financial Information: Providing your accurate and recent financial information is critically important when getting approved by the board. DO NOT overstate your assets or income because the information you provide will be carefully evaluated. Providing your financial information will require some work on your end. You’ll have to provide proof of bank accounts, car loans, salary information and any additional information they request pertaining to your finances.
Background Check: The board will typically do a credit and criminal-background check on you. Honesty is the best policy here. Be upfront about any questionable information and provide an explanation in your defense.
What Does the Internet Say about You? Make sure you also check your social media accounts. Delete unflattering content and images or make sure the content is exclusive to your personal connections.
References: Make sure you choose people who can write a strong and supportive letter to showcase your integrity. Choose references that live locally as references in other cities may raise a red flag.
Interview: You’re almost there; you made it to the interview phase! This means that you’re application was favorable and they are interested in approving you.
Below are some questions that they may ask you:
Who will be living in the residence with you?
Do you entertain often?
Would you be interested in serving on the board or one of its committees?
What are your hobbies?
Do you have pets?
Why did you pick this building and this neighborhood?
Will this be your primary residence?
Do you play any musical instruments?
Boards are not supposed to ask about marital status, race, religion or sexual orientation, which could open up a building to a discrimination lawsuit if you were turned down.
At Mackoul & Associates, we specialize in insuring Co-operatives and Condominiums in New York City and New Jersey. We wish you the best of luck in finding your new home in a co-operative building and if you should have any questions, we have insurance specialists waiting to take your call at (516) 431-9100