If you’re purchasing a co-op in Bushwick, Ft. Greene, Bed Stuy, Park Slope or any of the brownstone Brooklyn neighborhoods of NYC, you may have heard rumors about the sometimes intimidating process surrounding co-op board approval. As a real estate lawyer, I’ve seen a lot of crazy board situations and thought it might be useful to help you understand something about how it works.
The first thing to know is that co-op boards are made up of your (potential) neighbors. The culture of each board varies from building to building and reflects the personalities of the people who make them up. The hard truth is that they can sometimes be personally intrusive and meddlesome, controlling and demanding. As well, they may do things that are hard to understand. They may accept your application, but not trust that you will pay the maintenance and demand that a year’s worth of maintenance be deposited with them in advance. As co-op boards are not required by law to state why any application is rejected, they don’t offer any reason or support when turning down an applicant.
Is it possible to research a board or learn about their reputation? This can be difficult as board members frequently change so criteria for accepting applicants may change as well. If you’re using a broker who has experience in the neighborhood, they may be familiar with the board and can be of great assistance. In many cases a competent broker who works closely with you on your application can advise you on how to best present yourself to the board. Applications that are prepared and presented through such a broker will help you explain gaps in your finances or explain problems that have occurred in the past.
Treat the interview seriously and be prepared as if it’s a job interview. They may ask you what you can contribute to the building. Don’t question board members at the interview unless you’re sure that they are comfortable in fielding questions regarding policies around alterations, sub-letting, parties, etc. These types of questions should be answered through your lawyers’ due diligence or by a broker familiar with the building.
Park Slope real estate broker Jim Winters wrote a great book about the coop interview, it’s a must for all first time buyers and great resource for anyone in the industry. Click here to order your copy.
As with any residential real estate transaction, an experienced, local real estate attorney can help you navigate the sometimes murky waters. If you have questions about a co-op board interview or any of the specifics around purchasing a new home, give me a call at 212-962-2000 or click here to send me an email.
Kurt Roth, residential real estate attorney serving brownstone Brooklyn.
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