Between holidays, departures and the heat that accompanied us, and I would say drowned, for most of the New York summer, it is very likely that there has escaped a small but important news for those who buy or sell a co-op. Since 28 July, a new legislation has entered into force which, without revolutionizing the complex world of New York cooperatives, still introduces a change: for the first time, the board has a deadline.
And those who have already bought a co-op in Manhattan know how much this novelty can make a difference. Those who know the process also know that finding the apartment and negotiating the price are only the beginning. After the contract comes the famous board package: financial statements, account statements, tax returns, personal and professional letters, mortgage documentation and everything that the specific building requires.
Finally the package is delivered. And then he waits. How long? Until today it was not always easy to know. With Local Law 58, New York City decided to impose precise limits on this stage of the transaction. The legislation covers most co-ops with more than 10 residential units and introduces defined times both to verify that the application is complete, and to arrive at the board decision.
Here is the new timeline:
DAY 0 — Application presentation The buyer presents the board package with all the required documentation.
ENTRO 15 DAYS — The co-op must respondThe co-op must confirm receipt of the application and communicate whether the package is complete or indicate missing documentation. If you do not do so within the 15 days provided, the application is automatically considered complete and decorate the next term.
ENTRO 45 DAYS — Board DecisionSince the application is considered complete, the board has 45 days to communicate in writing its decision: approval, conditional approval or refusal.
+ 14 DAYS — One automatic extension The board can extend this term only once, for a maximum of 14 days, without the buyer’s consent.
OLTRE I 14 GIORNI — We need the consent of the buyerAny further extension requires the written consent of the buyer.
In other words, what for years has been one of the most unpredictable moments of the purchase of a co-op – the wait after the delivery of the board package – today has finally defined time boundaries. But be careful: the board always has the last word, and this is an important point. The Local Law 58, in fact, establishes within when the board has to decide, but does not tell him how to decide.
The board maintains its discretion in approving or rejecting a candidate and, as in the past, it is not generally required to explain the reasons for refusal, without prejudice, of course, to respect the laws against discrimination. What if the board doesn’t respect the new deadlines? This does not mean that the buyer is automatically approved. The law instead provides for civil sanctions for co-op, which increase in case of successive violations.
So, summing up, you can finally have a precise deadline but not automatic approval. And in August? Knowing New York, someone wisely thought about this too. Many boards traditionally slow or suspend meetings during the summer. The new law allows to temporarily suspend the count of days during a short summer recess in July or August. But the break must be formally established and communicated in advance to the interested parties. You can’t just “discover” for a few weeks without explaining.
Because buying a co-op does not only mean choosing an apartment and agreeing a price. Behind a transaction there are often a mortgage, a rate lock, that is the expiration of the mortgage to be blocked, a lease, a move, the beginning of the school, a transfer of work or perhaps the sale of another property. A late-week response can therefore have very concrete consequences.
For buyers, having a defined time window means being able to coordinate with greater security financing, closing and moving. For the seller, it means having greater visibility on sales times and reducing the risk that a transaction remains suspended simply because the board is late to pronounce. And in Manhattan, where the monthly carrying costs can be considerable, a few weeks more is not necessarily a detail. Some certainty in New York is always good news!
L’articolo Co-op in New York: finally the board has a deadline proviene da IlNewyorkese.
