Unlike condominiums a purchaser can be rejected by the coop board. In a Manhattan condominium the board only has first right of refusal and must buy the apartment for the same terms offered. The only way a condo can reject a buyer is to exercize their right of refusal and buy the apartment.
Please note that the objective of the Coop Board is simply to Maintain and to Raise the value of the property and the building.
There are three major areas in which the Board addresses this:
- The amount of financing allowed by the Board.
- Liquidity of the buyer after the purchase has closed.
- The Cash Flow of Buyer
The amount of this requirement varies from Co-op to Co-op and should be verified by your broker.
In the more affluent areas such as Central Park West, Fifth Avenue, and Park Avenue the liquidity required may be as much as several times purchase price. The majority of Boards require two to five years of debt service depending on the building. This also should be verified by the brokers.