What is involved in board approval?
Coops are known for their applications. All buyers of a coop must submit an application for approval by the board of directors, who govern the corporation. While each coop has its own application, the board application will likely ask detailed financial information (tax returns, bank statements, a questionnaire regarding all assets and liabilities), employment information, and personal background information. Buyers will need to submit personal and professional references, and often will need to participate in an interview.
While condos do not have such an extensive application, there is still one that is submitted to a board of managers. It is almost unheard of for a buyer to be rejected by a condo board. The reason is because most condos have a right of first refusal, meaning that if the board of managers rejects a buyer, then the condo itself must buy the apartment on the same terms instead.