When you purchase a co-op apartment, you don’t own the individual unit in your apartment building outright. Instead, you are actually purchasing shares in a corporation that owns the building, which grants you a lease to occupy the unit. There is no deed that grants you ownership of the living space; the owner receives an original stock certificate and an original proprietary lease at the time of closing as proof of ownership.

This distinction is a major consideration, especially when it’s time to put the co-op on the market for sale. Accordingly, when an estate sells a co-op, the process can be unexpectedly complex, particularly if the Executor doesn’t know what to expect. Luckily, an experienced estates attorney can help navigate you through the process.

How to Sell a Co-Op as an Executor

Before the Executor can even think about selling a co-op, she must go through the Surrogate’s Court process to be formally appointed as fiduciary of the estate. The co-op corporation will not recognize the authority of the estate’s representative without Letters Testamentary or Letters of Administration from the Surrogate’s Court. Since probate can be an extensive undertaking, the Surrogate’s Court will sometimes issue documents called Preliminary Letters Testamentary if the Executor can prove that the estate needs authority on an expedited basis. The Court issues these letters for cause – if debts must be paid urgently, the condition of the unit is dire, or the heirs are unknown, the Court will likely issue these letters to ensure that the estate assets are not neglected.

Once appointed by the Court, the Executor can coordinate with the corporation’s board of directors to list the unit for sale. Critically, the Executor must locate the original stock certificate and the original proprietary lease issued at the time of the deceased owner’s closing. If there is a mortgage, these original documents may be in the possession of the lender. If they cannot be located, the Estate will need to purchase a title insurance policy called an “Eagle 9” as an alternative to an expensive lost stock bond.

Why Selling Takes Time

Crucially, the co-op board is typically involved at all stages of the process. The board must approve the sale price to maintain the building’s value, and will thoroughly review all potential buyers to ensure that their financial history meets their standards. While each board has different approval benchmarks, it is important to know that the estate will not be able to sell to anyone who makes an offer – the buyer must be qualified and pass an interview prior to closing.

Once the buyer is approved, the closing will occur on the co-op’s timetable; typically, the closing will not occur unless an agent of the board can be present. Furthermore, since the required documents require coordination between multiple parties, scheduling a closing for a co-op unit can often take several weeks even with board approval.

Reach Out to an Estates Attorney for Help Today

While the process can be time-consuming and complex, the right representation will ensure effective communication between all parties and prevent unnecessary delays. If you are selling a co-op from an estate, it is highly recommended that you coordinate with an experienced estates attorney who will ensure you are prepared to keep the sale moving.

By Britt Burner, Esq. and Frank Oswald, Esq.

Britt Burner, Esq. is the Managing Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Frank Oswald, Esq. is an associate attorney at Burner Prudenti Law, P.C. focusing his practice areas on Trusts and Estates. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

What is an Executor?

The Executor of an Estate is the individual named by the Decedent in his or her Last Will and Testament to act on behalf of the Estate. The Executor is entrusted with the responsibility of making sure the Decedent’s last wishes are carried out with regard to the disposition of the Decedent’s property, assets and possessions.

October 3, 2016

What is Surrogate’s Court in New York?

Surrogate’s Court hears cases involving the affairs of decedents, the probate of wills, and the administration of estates. The Surrogate’s Court also handles certain types of guardianship petitions and adoptions.

August 3, 2022

What Are Letters Testamentary and Letters of Administration?

When a person passes away in New York state with assets that are solely in her name, a legal representative needs to be appointed to manage her estate. The Surrogate’s Court of the county where that person lived prior to their death appoints these representatives and grants them authority to act.

June 9, 2026