Board Package

The process of purchasing an apartment in a co-op in Manhattan can be overwhelming due to the amount of information that must be provided to the cooperative. To assist buyers, I have created a guide to help navigate this process.

Part 1

Introductory Letter

A co-op board package boild us down to numbers and figures. The introductory letter is your chance to introduce yourself and your family to members of the board in a more personal way. You can mention where you went to school, any achievement, children school + their achievement and anything else that shows your overall character.

Part 2

Purchase application

Here you'll find the info needed for a co-op purchase application. It can get complicated so attention to details is a must. Choosing the right broker also means choosing a person that knows their way around these convulated applications because filling it right sometimes makes the difference between approval and denial.

Part 3

Financial Statement

Your financial statement is basically a summery of your assets vs. liabilities. Naturally, co-ops would like to see that you have more assets than debts. Buyers that use financing will also need that statement in order to get a loan. Besides, it's always a good idea to know your financial standings.

Part 4

Loan Application

This step is equivelent to filling up a board package but even more exstensive and in-depth process. This is where the lender will actually call your bank to verify the amounts, reach out directly to your HR department to verify your employment ans so forth. Make sure to inquire with your lender about any piece of information that is neccessery for you to make the loan.

Part 5

Commitment Letter

When financing to purchase real estate your broker/lawyer will make sure to suggest a 'financing contingency' clause in your contract of sale. Typically, there is a time frame of 30-45 days after the contract is signed to get a 'commitment letter' which basically says that your lender is willing to lend to you under circumstances. Make sure to inquire with your lender for more info.

Part 6

Recognition Agreement

The form of ownership in a condo is called fee simple. You are an owner of 'real property'. In co-ops, you are the owner of shares in the building that give you the right to reside in it so long you abide by the co-op rules. When using financing to purchase a co-op, the bank will issue a recognition agreement that serves as a 3-way contract between the lender, the cooperative board and the buyer.

Part 7

Reference Letters

Co-ops ask for multiple personal and professional referrences. This is the time to ask your friends from college and your boss/professional collegues to vouch for you. This one should be easy and straight forward, right?

Part 8

Disclosures

Purchasing an apartment in NYC comes with lots of city and co-op specific disclosers. Your lawyer and real estate broker will explain each of these in detail.

Part 9

Alteration Agreement

Would you like to renovate your newly purchase co-op? great! But there are rules to follow and unlike a private house you will need to follow specific guidelines of the coop, the building if its landmarked, and the Department of Building.

Part 10

Fees and Deposits

Purchasing in Manhattan is not cheap. A typical buyer will most likely spend around 1%-2.5% (depending if its a co-op or a condo, if there is financing or not, etc..) of closing costs. So always add that amount to the down payment so there will be no surprises!