Caution, ain’t nothin’ like a sponsor apartment

See you in the New Year. . . Happy holidays!

One of my favorite posts.

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.

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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