In New York State, a co-op board has the right to reject an application based on any reason it chooses. As long as the co-op is not violating any of the human rights or equal opportunities laws in the state, it can reject any application for any reason. Before you try to buy a co-op, it helps to have an understanding of the most common reasons why applications are rejected. By avoiding some of these situations, you might have better success at getting your application approved.
Lack Of Liquid Assets
Regardless as to the reason the co-op was established, the simple fact is that it does not survive unless it collects its payments every month. That is why one of the top reasons that co-ops deny applications is the lack of the liquid assets necessary to make payments. The board is going to need to see proof that you will be able to make your payments and will not take your word for it.
Your Use Of The Property
Co-op boards generally do not like it when people buy an apartment they do not intend to use. If your goal is to establish a residential address in a city in New York with a co-op, then there is a good chance that the co-op board will deny your application.
As we have seen from the need for liquid assets, co-op boards love buyers who have a strong sense of stability in their lives. This also includes your employment history. If you have a tendency to jump from job to job, then your significant liquid assets might not be enough to get you approved.
The Way You Live
While co-op boards cannot discriminate against applicants based on race, age, gender, or religion, they can deny you if your lifestyle threatens to make the co-op an unpleasant place to live. For example, if your social media feed is filled with parties held at your place, then the co-op board might decide that you are not the right fit for their situation.
Your Application Is Unappealing
Would a co-op board really deny your application just because it was a little disorganized and parts were written with bad handwriting? Yes it would. Co-op boards consider it a show of respect when you put in the time to make your application look appealing before they even start reading it. Boards also don’t like false information on applications. Which means any little white lie you tell to try and make your application look better is only going to get your application rejected.
If you want to buy a co-op, then you first have to impress the board. There are a lot of ways to get your co-op application rejected and the worst part is that it can be difficult to predict just what the board is looking for. If you stick to the basics and show the board respect in your application, then you have a much better chance of being approved.