Meeting with the Board of Directors for the Sale of an Apartment

The Law Offices of Ronald S. Kahn & Associates

Coops: Meeting with the Board of Directors for the Sale of an Apartment

Keywords:Coop; Sale, Board Consent, Meeting with Admissions Committee.

Meeting with the Board of Directors, or, its alter ego, the Admissions Committee can be the most embarassing, frightful, nerve wracking, experience ever. President Nixon was turned down by a board as was Madonna. And, many others have been turned down, too.

Can you prepare for that meeting. Yes!!! Absolutely.

First query the broker. He/She should know the Board and its modus operandi.

What are some typical questions?

Why do you want to buy a coop instead of a condo?
What pets do you own?
What musical instruments do you play?
Why do you want to live in ____(area, buildling, City)?
Explain the source(s) of your income (or lack thereof)? Generally applies to a person on fixed income, an entrepreneur whose income fluctuates dramatically or someone whose income is totally sheltered giving the appearance of little or no income.
Do you travel a lot?
Will you have guests staying in the apartment when you are gone?
Do you wish to be on the board of directors? Generally, I would answer "No, but have ___ special skills and am available to contribute those skills if necessary."
Are you planning to renovate the apartment? Best to answer accurately. Better to have your renovation plans out in the open and not have a problem later.
What does owning a coop mean to you?
What does "quiet enjoyment" mean to you?
What sacrifices are you prepared to make to live in a coop?

The primary purpose is to ascertain if you are suitable to be a neighbor. Are you similar to us? Can and will you meet your financial obligations? Will your life style conflict with ours? Will our life style conflict with yours?

While the experience is traumatic, it does have its purpose.

Play to your audience - the admission committee. Be upbeat. Display your enthusiasm for your job and for the apartment. Who wants a morose person around them?

Examine your financial statement. Go over your ratios. Be sure that you are not spending too much for housing. Examine your monthly budget. Examine your cash flow. Review your tax returns for unusual items that may indicate a financial problem. The Board wants to feel comfortable that you will be able to meet your obligations.

Some of the questions were supplied courtesy of Rita Zausner of the Zausner Group (212 924 2115) operating in the Chelsea area. A great person. Many thanks for your help on our most recent transaction

Ronald S. Kahn

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