Before settlement can take place on the sale and purchase of co-op
unit, the purchaser must be approved for membership and occupancy
by the Board of Directors to assess the applicant’s ability
to handle the monthly carrying costs associated with ownership.
Each co-op has its own requirements for the sale and transfer of ownership. Typically, an application form seeking information about one’s employment status and income, as well as a listing of one’s assets and liabilities, is completed by the purchaser and submitted to the Board. Verification of employment, a consumer credit report and letters of personal reference are usually part of the application package. The co-operative may require the seller or buyer to pay a fee for the cost of obtaining a credit report and for handling the review process. Most co-op boards schedule an interview with the buyer to greet the prospective owner, answer any questions and explain some of the more important policies concerning the co-operative’s operation.