One of the obstacles that co-op buyers face is the preparation of a Co-op Board Package that helps the Co-op Board in approving the co-op purchase into their building. Even if a buyer decides to pay for the co-op 100% in cash, the Co-op Board can still reject the purchase if Co-op Board Package is not up to par in painting a complete picture of the buyer via a complete disclosure of the buyer’s financials, professional and personal references.
Contents of a Co-op Board Package:
- Table of contents
- Cover letter can be written by the buyer, buyer agent or broker. Be concise and complimentary of the building and apartment. Plans for the apartment.
- Financials include 2 years of income tax returns and W2 forms
- Account statements of assets and liabilities
- Employment confirmation consist of 3 most recent pay deposits, and a letter of employment
- Reference letters from friends and co-workers
- If taking out a mortgage, then include the loan application, commitment letter, and the recognition agreement (a 3-way contract between the Co-op Board, lender and the buyer that formalizes the lending bank and the Cooperative’s relationship)
The Co-op Board Package is a reflection of the buyer and first impressions are important. It is best to avoid incomplete and unorganized applications. Make it so that it is easy to read and understand.
The document requirements for the Co-op Board Package is unique for every co-op building. Using the guide on “How to prepare a Coop Board Package”, it is possible to check off necessary documents in completing the final Co-op Board Package.