It is a much easier way to purchase into a co-op. When selling an apartment, the sponsor is exempt from following the board’s guidelines and interview process, so purchasers of sponsor units do not have to go through the co-op’s lengthy application packages and review process and do not need a board interview to purchase. This can save considerable time and money for the prospective shareholder.
As long as the sponsor performs due diligence in qualifying the applicant there is usually not a problem; however, many boards feel that the sponsor’s only interest is in selling the apartment and therefore is not invested in putting applicants through extensive background checks that cost money.
If you are considering such a purchase from a Sponsor, it would be prudent to pay attention to just how much they scrutinize your application. While you will not be required to be approved by the Board, you want to make sure that the Sponsor is just “rubber stamping” all purchasers of their units. This could lead to problems within the building down the road.
"My name is Emilio. When I was buying my property, I hired Mr William J Reinhardt Jr as my Real Estate Attorney, it was one of the best decision I ever made because he did everything in his power to make sure my purchase was successful. For example, The utilities bills left over by the person who owned the property before me. I said thank you to Bill for not allow me to pay these costly bills." - 5.0 stars | Posted by Emilio Bien Aime | October 1, 2019
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