Board Application and Approval - Sumitomo Real Estate NY - Sumitomo Real Estate Sales New York

SELLERS GUIDE

Board Application and Approval

Approval from the board is necessary when buying condos or co-ops

  • In the U.S., when purchasing condos and Co-ops, the Buyer is required to submit an application to the condos or co-ops board.
  • The Buyer needs to obtain the board package from the board, and submits the board package together with the necessary documents (government- issued ID, past 2 years tax returns, bank statement, income statement etc.) to the board.
  • Application review will usually take about 1-2 weeks for newly constructed buildings and 2-4 weeks for older buildings. Once the application is approved by the board, the lawyer will arrange a closing date.


※ Condominium (Co-op) Board-- Boards of directors run condo corporations on behalf of owners and represent the owners. As an entity, they are responsible for making all major decisions regarding the maintenance of buildings and property, condos' finances, and must uphold and enforce the Condo Act, the declaration, by-laws, and rules. The Board also reviews the new buyer applications.

※ RIGHT OF FIRST REFUSAL - The Board has the right to purchase the property under the same condition. If the "sales price" due to mutual agreement between both parties is much lower than the "market price," for the purpose of maintaining the property value, this right could be exercised, and there are cases where application may not be approved. However, it is quite rare and unusual for a condominium to exercise that right.