4 years ago

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What is a condo board application in New York City real estate? We will demystify this topic in the following video. I'm Nick at Hauseit, we are the largest For Sale By Owner and Buyer Agent Commission Rebate company here in New York City, established in 2014. Visit our website https://www.hauseit.com to learn about ways to save money when buying and selling real estate and feel free to check out our buyer and seller closing cost calculators if you have a minute.

So, what is a condo board application? This is a rather confusing topic because most people in New York are under the impression that it's really only for cooperatives that an application is required. Well, the short answer is that both condo and co-op apartments usually require a purchaser to submit an application to the board of managers. It's almost a 100% likelihood that this will be requested for a co-op. In fact, we've never come across a co-op that doesn't have an application of some sort but for condominiums it's a little more flexible. Your typical mid or large-size building will usually have a pretty robust application and even for smaller buildings even if they're self-managed there may be some sort of paperwork that the purchaser will need to fill out.

What is included in a condo board application? Well, the most common type of condo application in New York, it's going to look a lot similar to what you'd find for a co-op. More specifically the application will usually require submission of a number of documents, such as a financial statement, a few years of tax returns, a few months of bank statements, some reference letters possibly business and/or personal letters, as well as a bunch of signature pages in addition to an application fee. One thing's for sure: if a condo has an application you will be asked to pay a number of fees. There will be an application fee usually a few hundred dollars which goes directly to the managing agent and it may also be a fee which goes directly into the coffers of the condominium. You may also be required to submit a move-in deposit or a non-refundable move-in fee or both.

Now as we mentioned your typical condo building will have some sort of application, but what specifically they ask for varies by building. You may find a condo building that actually thinks it's a co-op in the sense that the application is substantially similar to what a comparable co-op would request and by substantially similar we mean every single document you'd basically have to submit for a co-op will be requested by the condo. Tax returns, bank statements, reference letters, the whole range of things you'd expect with a co-op. More flexible condos on the other hand may just have a credit check or they may have a very basic application that really just asks you to provide information about the transaction such as the purchase price and the attorneys on the deal as well as the contact information of the buyer and the seller.

The main difference between a condo and a co-op purchase application is really the actual process after you submit the application. Co-ops of course have discretion as to whether or not to approve a purchaser they don't have to provide any reason for rejecting a buyer as of this filming. Furthermore, a co-op is not bound by any particular timeline as it relates to reviewing an application and making a decision. We've seen co-op boards take three months to respond to an application conversely, we've seen some coops take a matter of a few weeks or days to respond to an application. Admittedly in the case of the latter the seller was previously on the board and had a very good relationship with the fellow and current board members.

So, essentially with the coop you submit an application and you basically have no idea whether or not you'll be responded to in two weeks three weeks four weeks or eight weeks. Admittedly most coops do indicate four weeks as a guideline but again this is not binding. Condominiums on the other hand are required to review and respond to a purchaser’s application within a set period of time. More specifically the amount of time that a condo has to review a board application is determined by what is in the buildings offering plan.

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Hauseit LLC, Licensed Real Estate Broker
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