A condominium is an individually owned unit within a multi-unit building. Condo purchases generally begin with loan pre-approval (if the purchase will be financed) and an offer with the help of a real estate agent. Condo purchasers in New York do not have to pay real estate agents. The agent’s commission is paid by the seller out of the sale proceeds. A real estate agent’s job is to understand the market, look for comparable sales in the area and in the same building, and make recommendations on the best possible deals given the buyer’s goals and financial situation. A real estate agent can also help you negotiate concessions and the most favorable deal terms.
Once your offer is accepted by the seller, it’s time to hire a real estate attorney. Working with a skilled real estate attorney can reduce your stress and help your purchase go smoothly. As your attorney, James H. Cook, Esq. reviews and negotiates terms of the contract and drafts riders, which are a supplement to the contract to protect your interests. A purchaser’s rider may require, for example, that the seller make legally binding representations about past leaks, hidden defects, past and present pest issues which can include bed bugs and mice, toxic mold, and other representations about the condo.
Simultaneous with contract review and negotiation, James H. Cook Esq. conducts due diligence on the condo. Due diligence generally includes reviewing board minutes, reviewing the condo offering plan and amendments, by-laws, house rules, condo policies (pet ownership, subletting, alteration policies, etc.), reviewing the last two years of the condo’s financials and budget, and submitting a questionnaire to condo management. For buyers, due diligence may help avoid any unplanned expenses. Due diligence may also help you understand your obligations under your contract for utility bills and common charges, as well as ensure that any fees are in line with legal requirements. Once due diligence is complete, you should have insight on the building, prospective expenses, projects, increase in common charges or prospective assessment, and your condo’s financial state that will help you make an informed decision.
After due diligence is complete and the contract is negotiated, it’s time to sign the contract. The purchaser signs and makes a down payment, and then the seller signs. Once the contract is signed by the buyer and seller and the deposit is sent to the escrow agent, the contract is legally binding.
If you are buying a condo, James H. Cook, Esq. assists with the following:
• Reviewing the deal sheet
• Reviewing board minutes, the condo offering plan and amendments, the last two years of financials, by-laws, condo house rules, subletting policies, pet policies, alteration agreements, etc.
• Helping to calculate closing costs
• Reviewing, explaining, and negotiating the contract
• Drafting and negotiating legal terms of the additional purchaser’s rider
• Ordering the title search and help navigate title issues
• Reviewing the mortgage commitment
• Guiding you through private and bank mortgage financing and refinancing
• Representing you at the closing and explaining the closing documents
• Dealing with pre-closing walk-through issues
If you are selling a condo, James H. Cook, Esq. assists with the following:
• Drafting a Contract of Sale and supplement seller’s rider(protecting your interests as a Seller);
• Calculating closing costs
• Explaining and negotiating the contract and purchaser’s rider
• Facilitating clearance of title issues
• Facilitating preparation of New York city and New York State Transfer forms and draft a deed
• Drafting and negotiating post-closing occupancy agreements
• Drafting and negotiating assignment and assumption of lease agreements
• Ordering a payoff (if applicable)
• Representing you at closing and explaining the closing documents
A skilled real estate attorney helps protect your interests and guides you through the condominium purchase or sale process. Call James H. Cook, Esq., at (646) 844-0425 for a free consultation.
James H. Cook, Attorney at Law 