Closing questions
Can a condo board block a sale in New York?
A condo board holds a right of first refusal, not an approval right, so it rarely stops a sale. What it can do is delay one by withholding the waiver.
Can a condo board block a sale in New York?
Quick Answer
Condominium boards do not approve purchasers the way cooperative boards do. What the bylaws usually give them instead is a right of first refusal: on notice of a contract, the board may elect to purchase the unit on those terms for the benefit of the unit owners, or it may waive and let the sale proceed.
Exercise is rare. Doing it requires money the association usually does not have, a vote, and a willingness to own and resell a unit, so the practical function of the right is informational. It gives the board notice of who is moving in and an opportunity to collect arrears and confirm the unit is in good standing.
The document that matters is the waiver. Counsel submits the contract, the purchaser’s information and the building’s application to the managing agent, and the agent issues a waiver letter once the board acts or the response period runs. Lenders and the title file both want that letter before the closing is set.
Read the bylaws rather than assuming the standard form. Some declarations condition the waiver on payment of outstanding common charges, some require a specified notice period, and some exempt transfers to family members, to a trust or by foreclosure. Sponsor units and lender takebacks are also commonly exempt.
What happens if a condo board actually exercises the right?
The association steps into the purchaser’s place on the contract terms and closes on the unit itself, and the disappointed purchaser recovers the down payment under the contract. Because the association has to fund the purchase and later resell, exercise is unusual outside of unit-owner disputes and unusually low contract prices.
Does a condo board interview the purchaser?
Generally no. Most condominium bylaws give the board a right of first refusal rather than an approval right, so there is no package review and no interview in the cooperative sense. Buildings still require an application and supporting information, and a few maintain an interview practice that counsel should confirm early.
What else should you read before closing?
In the glossary
- Right of first refusalThe right to match an offer before a sale closes. In condominiums it is exercised or waived by the board, and the written waiver is delivered at cl...
- Common chargesThe recurring charge a condominium levies on each unit for building operations and reserves. Real estate taxes are billed to the unit directly and ...
- Title searchThe records examination behind a title report, covering the chain of title, encumbrances and court filings against the owners. It precedes the comm...
- DeedThe instrument that conveys real property. Signature, acknowledgment and delivery make it effective between the parties, while recording is what pr...
- RecordingFiling an instrument with the register or county clerk so it becomes part of the public record. Recording establishes priority against later purcha...
- Offering planThe sponsor's filed disclosure document for a co-op or condominium, carrying its budget, share or common interest allocation, building rules and sp...
Questions this raises
- How long does a condo right of first refusal waiver take?Condo waiver letters usually issue two to four weeks after a complete application. What actually delays them, and how to keep the closing date intact.
- Can you do a CEMA on a condo refinance?A condo refinance can use a CEMA because the loan is a recorded mortgage. How the assignment works, what it saves, and which lenders decline to coo...
- Why is there no CEMA on a co-op?A co-op loan is secured by a UCC filing, not a recorded mortgage, so no mortgage recording tax applies and a CEMA has nothing to consolidate or save.
- What is the difference between common charges and maintenance?Condo common charges fund operations only, with taxes billed separately. Co-op maintenance bundles operations, property taxes and the underlying mo...
- What is a non-warrantable condo?A non-warrantable condo fails secondary market eligibility, so conventional financing is unavailable. What causes it and how buyers finance around it.
Building types
- Standard condoA New York City condominium unit: real property conveyed by deed, recorded in ACRIS, with an undivided interest in the common elements.
- New-development condoA first sale from the sponsor of a newly built condominium, governed by an offering plan, often delivered on a temporary certificate of occupancy.
- Condo in a converted buildingA condominium created by converting an existing rental building, where non-purchasing tenants, the reserve fund and building-wide conditions carry ...
The statute itself
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Legal Disclaimer: This page is general information about New York practice. It is not legal advice, it does not account for the terms of any particular contract, building or transaction, and reading it does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.