An Insider’s Guide to Reviewing Co-op Building Finances

Once the offer is accepted and the deal sheet is sent out, there’s still work to be done if you’re buying a co-op. And you probably have plenty of questions: Who exactly is looking at all this data, what are they looking for, and who is responsible for the due diligence at this step? Let’s take a closer look at what happens next (as well as give you a peek at a sample co-op financial statement so you can get a better idea of the process). 

At this point, your attorney will usually ask for the cooperative financial statements, board minutes, offering plan, house rules, proprietary lease, sublet policy, and purchase application on your behalf. If your buyer agent conveys that you are a serious, pre-approved, or all-cash buyer who has been searching for a while, it might be possible to obtain the financial statements before submitting an offer.

Once your attorney receives all those documents, fortunately, it’s them who will be performing legal and financial due diligence on your behalf. It’s important to note that financial due diligence is not the responsibility of buyer agents in NYC. Therefore, your attorney will review the cooperative financial statements instead of your buyer agent. While you are free to review them yourself, it’s a relief knowing that a competent attorney will thoroughly examine them.

Take a look at the short sample cooperative financial statements here but know that these statements can be (and often are) longer and more detailed. Not all cooperative financial statements are audited like this one. Also, you’ll typically only receive annual financial statements, meaning there’s a delay built in and you won’t have access to the current financial status of the building. No worries — this is all to be expected.

To address that gap, buyer’s attorneys usually request a co-op questionnaire that inquires about the building’s current status. In rare cases, you may be able to obtain the building’s current year budget or the latest monthly financial statement, although this request is rarely granted. It’s important to consider that making such an unusual request may be seen as difficult and could potentially lead to board rejection so tread lightly. 

Remember, this is the time you want to rely on your dream team of experts. Get in touch if you need recommendations on attorneys, guidance on reviewing due diligence materials, and whatever else you may need!


If you’re interested in learning more about the buying process, download our free Buying Into Brooklyn Ebook. We share a ton of valuable resources to demystify the buying process and help you become a Brooklyn home-owner.


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