Asked and AnsweredWe ran across a co-op that has a few “sponsor owned” apartments for sale. Is there any advantage in buying one of the remaining sponsor apartments?
Yes. In many cases, when an apartment is still owned by a sponsor in a co-op, the purchaser will not have to go through the grueling application and interview process, as there is no Board approval. The purchaser may have to complete all or a portion of the purchase application and a credit check may be required, but the Board does not have the ability to “turn down” the purchaser. This feature can be a major advantage if the purchaser has shaky financials or some other financial or personal issue that might otherwise impact approval by a co-op Board. If you happen to fall into a category where co-op Board approval might be “iffy”, tell the broker to look for sponsor apartments.