Q: What is the time frame within which I must submit a co-op board package to the managing agent/co-op? What are the consequences if I fail to submit the board package within the appropriate time frame?
A: Absent language in the contract to the contrary, if financing is permitted under the contract and the co-op requires the loan commitment letter to be submitted with the board package, then the board package must be submitted within three (3) business days of the purchaser’s receipt of the loan commitment letter. If financing is not permitted by the contract, or if the co-op does not require the loan commitment letter to be submitted with the board package, then the board package must be submitted within ten (10) business days after the purchaser’s attorney receives a fully executed contract.
If the board package is not submitted within the applicable time frame, then the purchaser could be in default under the contract and risk losing his/her down payment.
Important Tip: As it is customary for a real estate broker to prepare and submit the purchaser’s board package, a real estate broker assumes responsibility (subject to the purchaser’s cooperation in providing the real estate broker with all necessary documentation) in ensuring that a completed and accurate board package is submitted within the appropriate time frame. Accordingly, a real estate broker must be aware of the submission time frames and coordinate with all parties involved in the transaction in order to ensure that the board package is submitted in a timely fashion.