Sponsor Unit

Definition

A sponsor unit is one that the original developer retained when the building was created and never sold to a regular owner. Because the sponsor reserves wide rights in the offering plan, sponsor units typically sell WITHOUT board approval — a meaningful advantage for buyers who want a faster, simpler closing without the extensive board package process. Sponsor units may also be exempt from certain co-op restrictions (such as sublet limits or pied-à-terre prohibitions). Buyers sometimes pay a premium for these advantages. Note that sponsor units may have deferred maintenance issues if they have been used as rentals for years.