By Lisa Iannucci, FrontDoor.com | Published: 8/06/2008
When you buy a single-family home or condo, you don't need approval from the previous owner or the neighbors. However, when you purchase a co-op, the board of directors must approve of you financially and personally. In other words, they must like you. Although a board cannot discriminate against you, they do not have to give a reason for their rejection.
For that reason, the approval process can be stressful and nerve-wracking. Even if you really love the unit and have a strong financial portfolio, the board has final say on whether you can own it. Especially in New York City, where co-ops in the best neighborhoods have long waiting lists, boards have strict requirements, including thorough background checks and proof that your annual income is at least 50 times your monthly mortgage and expenses.
If you're one of the lucky ones, the board will approve your application and welcome you to the building. You're on your way to enjoying your new home.
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