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How To Prepare a Co-Op Board Package
A major aspect of purchasing a co-op apartment is completing a purchase application and assembling financial documents and references, which together are commonly referred to as "The Board Package." First time co-op buyers are often shocked by the amount of confidential material required by boards. Just be assured that the information is kept confidential.
The primary purpose of the Board Package is to assure the corporation of your financial ability to carry the apartment (boards are tougher than banks) and to give them confidence that you will be a "cooperative" shareholder and a welcomed member of their community.
Each co-op has its own set or requirements and application form which your Coldwell Banker Hunt Kennedy agent will obtain for you from the building's managing agent.
Our two main recommendations are these:
- Read the instructions on the cover page carefully and plan to provide ALL the information requested.
- Be sure your application, references and supporting documents are neat and clear.
The most common elements of a Board Package are:
- Purchase Application - Should be typed. Fill in all the blanks and answer all questions: name, address, social security number, name of attorney, schools attended, etc.
- Credit Release Form - Your permission for the managing agent to obtain a credit check on each applicant. Sign it.
- Contract of Sale - A copy will be acceptable.
- Financial Statement - A blank form is usually provided in the package. Basically, a statement of all assets and liabilities AND supporting documents. It is VERY important that all sums on the statement reconcile with the attached supporting documents. For instance, don't list a checking account balance as of January 1, and then include the February statement as backup. Every item on the statement (except for personal property) needs documentation.
- Reference Letters - A combination of personal and business references. Coldwell Banker Hunt Kennedy recommends that these letters be taken seriously. Please ask your friends and associates to be specific in their anecdotes and glowing in their comments. These letters are an opportunity for a Board to "get to know you." They also provide subjects for the interview discussion.
- Tax Returns - Many co-ops require the last one or two most recent tax returns.
- Landlord References - Verifying your past prompt payment of rent or maintenance charges.
Board Interview:
Approximately two weeks after the completed Board Package has been submitted to the managing agent, you will be called for an interview. If your schedule has unusual constraints that would limit your availability for meeting with the board, your Coldwell Banker Hunt Kennedy agent will indicate this in his or her cover letter for the board package.
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