Caution: Ain’t nothing like a sponsor apartment

When co-op buyers see the words “sponsor apartment” in a converted building, their eyes invariably light up with anticipation.  In fact, some buyers will specify that they want both to live in a co-op and to buy only a sponsor apartment.

A decent sponsor apartment with minimal closet space.

For readers who are not in the know, the reason is that sponsor apartments will allow buyers to avoid having to undergo the tedious, time-consuming task of assembling inches thick of a board package, the rigors of a board interview and all the attendant anxiety.

Virtually all that sponsor wants to know is that you have the cash for a deposit and the means, including certainty of lender approval, of having the funds to close.

In other words, purchasing a sponsor apartment is a lot like buying a condo – smooth sailing.  (Buyers of both condos and co-ops would be well advised to get into the weeds by reading the advice that lawyer Ron Gitter provides.)

But . . .  (There’s always a “but,” isn’t there?) Continue reading

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