Should you ever want to sell your co-op – good luck! Just as it is a challenge to buy a co-op, it a nightmare to sell one.
The Board of Directors (BOD) can continuously turn down the potential buyer for any reason they can conjure up. If you price your apartment too low, the board will not be happy and deny the applicant. Another reason for rejection can be employment history. The BODs want buyers with job stability and it is not uncommon for prospective buyers with sufficient assets to be turned down because they changed jobs every few years. Have a good income and many assets but a poor credit history? The BOD is unlikely to accept your application. A good broker will examine a client’s financial history to make sure there are no red flags that attract a rejection by the BOD.
Some BODs will accept a pied-a-terre while others look at the concept on a case-by-case basis; some BODs will not consider the idea for a New York minute. The broker should have a clear understanding of the rules of a prospective building before moving forward with an offer from the buyer.
If the potential buyer requires a guarantor, it is iffy that the BOD will accept the arrangement and the BODs are likely to require a few years of tax returns as well as verification of income and assets. Some coops will accept high-profile public figures, while others do not want attention given to their building and are concerned with shareholders who may disturb their peace, quiet and security.
Most BODs no longer object to shareholders who work in their apartments, as long as their occupations do not involve a revolving door of clients, creating traffic in the lobbies and backyard barbecues.
A writer might be OK, a psychotherapist may be rejected and a recording artist will definitely not find acceptance. The building may not be pet friendly; even if pets are permitted, there are likely to be limitations on the size, the number of dogs, or the breed. In some building, Pit Bulls, Mastiffs and Rottweilers are not permitted while others will not permit a dog over 50 pounds.
