NYC’s Proposed Co-op Law Could Transform Co-op Sales

NYC’s Proposed Co-op Law Could Transform Home Sales

Buying or selling a co-op apartment in New York City has long been one of the most stressful and unpredictable real estate experiences. Unlike condos, co-ops involve an additional layer of approval from the building’s board of directors—an approval process that can stretch for weeks or even months without explanation.

But a new bill introduced in the NYC Council, Int. No. 1120, aims to change that. If passed, this law would create clear rules and strict timelines for co-op boards when reviewing buyer applications. It would add structure, accountability, and fairness to a process that has historically operated with very little oversight.

This blog breaks down what the bill does, why it matters, how it compares to recent legislation in surrounding counties, and what New Yorkers can do if they want to support it.

What the Law Would Do

At its core, Int. 1120 sets deadlines for co-op boards to follow during the sale of a co-op apartment. Today, no such deadlines exist. Boards can take as long as they want, and buyers and sellers often feel powerless.

Here’s what the bill would require:

1. A Standard Application for All Buyers

Co-op boards would need to maintain and provide:

• A single standardized application

• A complete list of required documents

• Clear instructions on where and how to submit materials

This eliminates guesswork and ensures every buyer is treated equally.

2. Acknowledgment of Documents Within 10 Days

When a buyer submits materials, the board must send a written acknowledgment within 10 days stating:

1. Whether the application is complete

2. What documents are missing (if any)

3. If additional information is needed

If the board doesn’t send this acknowledgment, the application is automatically considered complete.

This closes a long-standing loophole where boards simply didn’t respond.

3. A 45-Day Deadline to Approve, Conditionally Approve, or Deny

Once an application is complete, the board has:

• 45 days to issue a decision

The board may:

• Grant unconditional approval

• Approve with conditions

• Deny

The board also gets one automatic 14-day extension, if they notify the buyer.

4. Buyer Can Trigger a Final 10-Business-Day Notice

If the board does not issue a decision after the 45 days (plus any extension), the buyer may send a 10-business-day notice:

If the board still doesn’t respond → the sale is automatically approved by law.

This protects buyers and sellers from indefinite delays.

5. Summer Adjustments for Boards That Don’t Meet

Some co-op boards do not meet in July or August. If they have this policy documented, they get extra time, up to October 15.

6. Buyers Can Sue If a Co-op Interferes After “Deemed Approval”

If the board blocks the sale after being automatically deemed to approve it, the buyer may sue and recover attorney’s fees.

Why This Law Matters: Key Benefits

1. It Brings Transparency to a Historically Opaque Process

Co-op transactions often suffer from:

• Long wait times

• Poor communication

• Mystery rejections

• No updates

This law forces boards to communicate clearly and promptly.

2. It Protects Buyers from Losing Money

Delays can cause:

• Expired mortgage rate locks

• Higher interest rates

• Additional moving and storage costs

• Lost time and lost opportunities

Clear timelines protect buyers financially.

3. It Protects Sellers from Deal Fallout

Sellers often:

• Wait months for a decision

• Lose backup buyers

• Lose their next home because they can’t close

Timelines help keep deals moving and reduce fall-through rates.

4. It Reduces Stress and Uncertainty

Buying or selling a home is stressful enough. Structured deadlines give everyone confidence in the process.

5. It Aligns NYC With Surrounding Counties

This is important.

In recent years, Westchester County, Rockland County, and parts of Long Island have passed laws requiring co-op boards to issue decisions within a set timeframe—often within 45–60 days.

These reforms have not harmed co-op communities. Instead, they:

• Increased fairness

• Reduced discrimination claims

• Ensured timely decisions without affecting board authority

NYC is now one of the few major markets in the region still operating without these protections.

6. It Preserves the Co-op Board’s Right to Say No

Boards can still deny buyers for legitimate reasons. The law only requires:

• Clear communication

• Timely decisions

It does not force boards to approve any applicant.

7. It Keeps NYC Competitive

If buying in NYC becomes too stressful or uncertain, buyers may look elsewhere.

This law helps modernize a system that has not been updated in decades.

If You Support This Bill, Contact Your Council Member

NYC Council members pay attention when residents speak up.

If you believe that co-op sales should be:

• Fair

• Timely

• Transparent

• Consistent

…then you can contact your local Council member and ask them to support Int. 1120.

Let them know:

• You support timelines

• You support transparency

• You support fairness for buyers and sellers

Even a quick email or phone call can make a difference.

If you don’t know your Council district, I can help you look it up.

Final Thoughts

Int. No. 1120 would not eliminate co-op boards or remove their power. What it does is bring predictability, clarity, and fairness to a process that impacts thousands of New Yorkers each year.

With similar laws already in place in nearby counties, this bill puts NYC on a level playing field while protecting both buyers and sellers from unnecessary delays.

If you’re navigating the co-op market now—or plan to in the future—this legislation could greatly improve your experience. To connect with me directly, contact me at 917-254-2103. For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text HomeswithJustin to 85377.