HOW STUFF WORKS
QUIZZES

FOLLOW US
Fact or Fiction: Co-op Boards
by Staff
Behind every co-op is a shady board of puppet masters pulling the very strings of existence, right? While it may seem that way, it's not always so. Take this fact-or-fiction quiz to test your knowledge of the authority and duties of co-op boards!

Co-op boards have the right to reject any purchase application for any reason.

  • fact
  • fiction

Generally, it's easier to prove discrimination by a co-op board if your application is turned down without a request for an interview.

  • fact
  • fiction

A single mother of three applying to buy an apartment could be lawfully denied.

  • fact
  • fiction

Most brokers recommend asking as many questions as possible during a co-op board interview to show preparation and interest.

  • fact
  • fiction

It's lawful and expected that co-op boards may ask an applicant personal questions during the interview.

  • fact
  • fiction

According to the law, the standard that a co-op board must reach in order to justify a rejection is "business judgment."

  • fact
  • fiction

The vote of a co-op board can require an owner to go above and beyond the duties written in the co-op rules.

  • fact
  • fiction

A co-op board can be sued successfully for making a bad business decision.

  • fact
  • fiction

It's not only legal, but also helpful for a buyer's broker to steer the buyer away from neighborhoods and buildings that are notoriously unfriendly to the buyer's race, religion or occupation.

  • fact
  • fiction

An owner can be held responsible for a previous owner's lack of renovation permitting.

  • fact
  • fiction