CoopAndCondo.com - Addressing the realities of Residential Real Estate

From the Law Office of Ronald H. Gitter, Esq.

Residential Realities April 2011

       
Residential Realities April 2011

April 30, 2011: The Punch List Problem...

Run That By Me Again...

In "Repairing New Construction: Five Fixes for Sponsor Transactions", I suggested a number of improvements to the process by which sponsors are given the privilege of selling apartments to the public. In the post, I discussed one of my pet peeves…the concept of the punch list. It amazes me that folks will pay millions of dollars for an apartment and will accept the fact that the sponsor does not have to deliver a completed product at the time of closing. It can sometimes take months for the sponsor to finish the punch list.

Ripped From the Headlines

In Curbed yesterday, there was a piece about The Toren, a Brooklyn condo development, in which it was reported that a lawsuit was brought as a result of the sponsor’s failure to complete a punch list. The sponsor claimed he knew nothing about the lawsuit and was completing punch lists in the ordinary course. It is, what it is...

I mention all this because of the take away from the article: that purchasers should have the punch list completed prior to the closing. Unfortunately, that just doesn’t happen…ever.

Improving the Process

As I advocate in my post, I am strongly in favor of an escrow procedure by which funds are held back until the punch list is completed. If the punch list is not completed within a specified period, the escrow should be released to the purchaser. Even this proposal can get complicated, as there can be repairs or replacements that only the sponsor can undertake. Nevertheless, something has to be done to improve the way newly constructed apartments are delivered.

Greater Oversight is Needed

The AG’s office has its hands full trying to manage new offerings and existing plans. That being said, limiting the sponsor’s get out of jail free card when it comes to the punch list would go a long way to improving new construction transactions.

April 27, 2011: A Teachable Moment

Doing Due Dilly

I will be teaching a continuing education class at the New York Real Estate Institute, on May 3rd, at 6 p.m., entitled “A Broker’s Guide to Pre-Contract Due Diligence and Disclosure”. The course will cover what can and should be investigated by the buyer before the contract is signed and the broker’s obligation to disclose material information about the listing. How dual agency impacts disclosure will also be discussed. Please join me.

April 23, 2011: Agita on the East End--That queasy feeling from digesting the numbers...

Where I'm Coming From...

I’m writing this from a woodsy area of the Hamptons that’s north of Sagaponack, around the corner from Bridgehampton and an easy ride to Sag Harbor. I like to call this conveniently located triangle “Shagaponack”. That’s my invention, but you can use it. As if the rainy weather isn’t enough to wash out Easter weekend on its own, Amanda Fung’s story in Crain's, “Tide Goes Out on Hamptons Sales, Prices”, detailing the dismal first quarter results of 2011, as compared to a year earlier, will no doubt have sellers and their brokers grumbling through Easter brunch. And rightfully so.

A living large lifestyle venue, the Hamptons continue to be squeezed by the same vice plaguing many other parts of the country: falling prices and diminished sales volume. What was worth $5,000,000, is now selling for $4,000,000, or perhaps even less. What was selling for $1,000,000, might not be selling at all. Yet it’s still the Hamptons. The Laundry and Della Famina close, as well as other local favorites, but Race Lane opens and Nobu comes to the Capri. Hope springs eternal, particularly for increased sales activity in the second quarter. So it’s really a mixed bag for those who summer in and about the enclave. The Range Rovered East End motors on.

Several weeks ago I went to a presentation given by Doug Heddings, a knowledgeable broker and True Gotham blogger, on the state of things in Manhattan and the Hamptons (where he recently opened an office). He offered an interesting insight: As soon as the press turns negative, the phones stop ringing. Apparently, the real estate buying public scares easily, luxury real estate being no exception. So it may be a quiet Easter weekend at the beach this year, but the Hamptons ain’t going away any time soon.

April 20, 2011: Public Relations in Motion

Here We Go...

An article in the Post yesterday appears to begin the real estate industry’s public lobbying effort to extend 421-a tax abatement benefits that expired in December 2010. There is also an effort to cap real estate taxes at 20% of assessed value. As the legislature considers these issues, rent stabilization benefits are also in play (those benefits expire in June). Balancing tax abatement benefits to the developers with rent protections for 1,000,000 of the Mayor’s constituents will keep folks in Albany for many weeks to come. The legislative battle to resolve these polar opposites could easily turn into a brawl of steel cage proportions, as Democrats seek to protect tenants and Republicans fight for the big guys. Expect compromises and renewals for both sides.

April 16, 2011: Is Brooklyn Hot?

Memories of Things Past

Growing up in Brooklyn in the sixties, we all longed for our last day in that borough, and our relocation to the “City”, which was what Manhattan was called by those who resided elsewhere. A family trip to see a movie at Radio City was the equivalent of visiting another planet. And Manhattan is still the epicenter of hipness and cool and where most kids from outside New York would like to wind up one day. That being said, an interesting trend may be emerging.

Crunching the Numbers

As Manhattan searches for its mojo, a REBNY report this week showed that Brooklyn was the only borough where sales improved from a year ago. As reported on April 15th in the Wall Street Journal by Josh Barbanel, in The Real Deal by Adam Fusfeld and in Crain's by Amanda Fung, one would have to conclude that this uptick in sales traffic in Brooklyn can’t be dismissed as a anomaly on the road back to New York’s real estate well being. Maybe something bigger is going on.

Anecdotal Evidence Counts

As the second quarter begins, I have done more transactions in Brooklyn this year than ever before. The buyers of those units vary greatly as do the areas in which the sales are occurring. From first time home buyers to retirees, folks seem to be turning their attention to the other side of the bridge. Although Jonathan Miller in Josh’s article called sales in Brooklyn “flat as Flatbush”, I would not be shocked to see sales continue to improve in Brooklyn for one reason: value.

The Consumer as Value Player

Whiling away the hours on Street Easy, my new favorite pastime, it’s not difficult to see why someone might look outside of Manhattan for a value purchase. As the Manhattan housing stock continues to age, which translates into higher carrying costs and downward price pressure, buying new construction in Brooklyn with great amenities and a significantly lower price point and carrying costs will continue to make sense for those entering the real estate market in post crash New York. That $700K will go a lot further for a first time buyer’s first apartment. Is it a trend? I think so.

April 10, 2011: Disclosure Paperwork is Reduced but not the Complexity of Dual Agency

A Change in the Law

As brokers continue to figure out compliance with the revised dual agency law, the New York State Department of State has reduced the paperwork burden for the seller’s broker under limited circumstances. As stated in an April 5th REBNY Bulletin from Neil Garfinkel, the organization's counsel, if a potential buyer is represented by a broker who is present at the time of the showing, the seller’s broker is no longer required to deliver the statutory form, disclosing that the broker is working for the seller. There are exceptions to the exception, including a scenario where the buyer’s broker is not present or the seller’s broker is acting as dual agent.

Dual agency reminds me of the court room scene in Woody Allen’s Bananas in which the protagonist, Fielding Mellish, is both the prosecutor and the witness being interrogated. He keeps running back and forth from the witness box to ask and answer the question. At one point he asks himself “Are you being coy with me Mr. Mellish?” Funny.

On the Ground with Dual Agency

Not so funny when dual agency is involved. A recent situation proved to me beyond a doubt how complicated the dual agent role can get when the parties have a disagreement over a material issue. Just as the contract was about to be signed, the buyer discovered that the seller might not have obtained Board approval for all of the renovations undertaken in the apartment. Although the seller vehemently denied that alterations had not been approved, the buyer insisted on further assurances, which the seller was not prepared to give. The broker, who was acting as dual agent, much like Woody Allen’s character, repeatedly changed sides and loyalties, both advocating for and against each party as the drama unfolded. Although the broker should have been there to resolve this misunderstanding, as the level of mistrust was so high, the parties elected to deal directly with each other rather than communicate through the broker. It’s always tricky when the parties start communicating without a filter, but fortunately, the buyer's concerns were resolved.

The economics of dual agency are enticing, but things can get out of control quickly when a problem arises.

 April 8, 2011

Google Maps Out Foreclosures...

I just came across this Business Insider post from late January, entitled "A Frightening Satellite Tour of America's Foreclosure Wastelands", which combines foreclosure statistics compiled by Realty Trac with Google Maps and satellite imagery. The foreclosures are represented by red dots and are superimposed on the maps of twenty cities with significant foreclosure histories from 2010. For example, Miami and Phoenix each had a foreclosure filing rate of 1 out of every 14 homes. It’s hard to comprehend both the magnitude of those numbers and the graphic representations as they appear on each of the maps. When you consider the vast number of red dots, you begin to understand why the process of absorbing this failed housing inventory is taking much longer than expected.

The New York Disconnect

The maps got me thinking about the Saul Steinberg New Yorker cover from 1976, entitled “View of the World From Ninth Avenue”. As illustrated, once you got across the Hudson River, it wasn’t very far to Kansas, and not much further to the Pacific Ocean. Back then, it was commentary on New York as so called center of the universe. But as a metaphor for today’s housing crisis, the illustration covers other ground. There’s no question that the housing crash has been painful here in the five boroughs, but nothing remotely equivalent to the housing meltdown suffered throughout most of the country. Like the drawing, for many of us, that housing crisis is out there somewhere, west of the Hudson.

And So It Continues…

Today I spoke with a real estate attorney in South Florida who had just made the rounds of the local real estate brokers for his monthly face time. All about town the word the same: quiet…very quiet.

 April 3, 2011: More Changes to Residential Lending

I’ve been on a lending jag lately and rightfully so. The beginning and the end of the housing crisis can be linked to stability in the residential mortgage markets or the lack thereof. Another step in the direction of improving lending standards and ridding the market of junk loans, is the establishment of a “qualified residential mortgage” or “QRM”. These loans, as proposed by the F.D.I.C. and other regulators, would require a 20 percent down payment by the borrower, thereby creating a gold standard for mortgage lending. Unless a loan meets the standards of a QRM, the bank making the loan will be required to maintain a small portion of the risk associated with the loan. In other words, the bank simply can’t sell the loan to Fannie or Freddie and be on to the next borrower.

Requiring Banks to Maintain Lending Risk

As reported in the Times over the past few days, the proposed rules, mandated under the Dodd-Frank legislation, appear to bring a greater degree of accountability to the lending process, for those loans that are less than golden. But as we’ve learned over the past decade, banks will lend money, as long as they don’t have to retain any risk associated with those loans. As pointed out in the article, thanks to Fannie and Freddie, “the government is responsible for something like 95 percent of all new mortgages issued”. Banks are off the hook financially with almost all residential mortgage products except jumbo loans.

Redefining Home Ownership Continues

Although the initial reaction to the proposed rules is positive, one has to wonder how difficult it will be to obtain a loan that does not qualify as a QRM. One could argue that banks will gravitate to the loans that allow them to sell the loans risk free, rather than make loans that require the lenders to retain a portion of the risk with more challenging borrowers. As the government and the banks continue to tighten underwriting guidelines, the number of folks who can qualify for a mortgage will decrease and home ownership could be become elusive for many.

So it Begins

As the proposed rules are open for comment, the 20 percent down payment requirement may get reduced somewhat in the sausage making process of satisfying all the players: banks, regulators, consumer groups, realtors, builders, and last but not least, the borrower. But the pendulum is swinging fast and residential lending won’t be same when all is said and done.

Simplifying the complexities of Cooperative and Condominium transactions in New York City

Asked and Answered

Q

I don’t smoke, but the smell of smoke is wafting into my apartment from my neighbor. Is there anything that can be done to remedy this condition?

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I’m selling my co-op tomorrow and my bank attorney has not yet received the stock certificate and proprietary lease from my bank. Will the closing have to be adjourned?

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The seller has indicated that there was a leak in the bathroom from the apartment above that has been repaired in all respects? Can I rely on seller’s representation to that effect in the contact?

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My mortgage lender has informed me that the cooperative in which I am purchasing an apartment has inadequate insurance coverage and has requested that the co-op increase its coverage to meet the bank’s new minimum requirements. Can the bank withdraw its underwriting due to a lack of insurance coverage by the co-op?

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The commitment letter included a condition that my loan was subject to a “second review” by the investor to whom the loan will be sold. Has my commitment letter been issued?

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Can I purchase my co-op in the name of a trust?

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Can I allow the seller to remain in possession after closing?

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There’s a repair needed in the apartment that the Seller promises to remedy after the closing. Is that a good idea?

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Do I care who the bank attorneys are?

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Do I have to go to the closing?

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One of the conditions in my loan commitment states that the monthly maintenance cannot increase by more than five percent? Is that a problem?

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Can I have a roommate after I purchase my co-op apartment?

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Can I undertake renovations before the Closing?

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Do I need a home owner’s insurance policy for my apartment at the time of my closing?

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Should I let the broker do the walk through?

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Once I get a loan commitment, is my loan approved?

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When it comes to purchasing an apartment, what exactly is due diligence?

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Do I have to let the maintenance people in to fix a building system?

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Does my dog have to be interviewed by the Board?

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Is buying an apartment in a small building a good idea or a bad idea?

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Can I fudge on my numbers in my financial package to the Board?

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Should I use a mortgage broker or should I go direct to a bank?

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Should I have the apartment inspected before I sign the contract?

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Do I Really Have to Give the Board My Tax Returns?

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I am purchasing an apartment with extensive landscaping on the terrace. Can the co-op or condo make me remove landscaping that was existing at the time of my purchase?

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I have an opportunity to buy a garage space, but the sponsor is calling the arrangement a “license” rather than a “purchase”. Does that matter?

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We are considering an apartment that will require us to move the bathroom to another location in the apartment. Is such a move possible?

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The seller’s bank can’t locate the stock and lease for the co-op closing. Can we still close?

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The broker told me that I can adjourn the closing for 30 days? Is that correct?

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The Offering Plan for my condo indicates that the apartment has a “lot line” window. Is that a problem?

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My dog bit someone in the lobby and I have been notified that if it happens again, my dog will have to go. Does the Board have the power to restrict me from having a pet?

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There is an unobstructed view from the apartment I am considering, but there is a vacant lot directly in front of that side of the building. Is that reason for concern?

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The Managing Agent called and it looks like my finances will not be sufficient to get Board approval. Is there anything I can do?

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The managing agent has had our application to purchase a cooperative apartment for three weeks and nothing has happened. Is there anything we can do to move things forward?

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We are considering an apartment in a co-op where the sponsor still owns units. Is that a problem?

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The seller’s apartment presently has a storage unit. Does the storage unit transfer with the apartment?

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We’re closing in three weeks, but our lease is up next week. Can we move in before the closing?

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I just did the walk through on the purchase of a sponsor unit and we have an extensive punch list. Will the punch list be completed by the time of closing?

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I’m buying an apartment from a sponsor and the Offering Plan requires me to pay the sponsor’s transfer taxes and attorneys fees. Do I have to?

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The purchase price of my apartment is over $1,000,000.00. Is the transaction subject to the “mansion tax"?

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I’m selling my apartment, but I’m not a resident of New York State. Are there any special closing costs?

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We did the walk through and the apartment was filthy. The contract required the apartment to be “broom clean”. Can we complain at the closing?

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I have to sell my apartment in order to afford the new one I’d like to buy. Can the contract be contingent on the sale of my existing apartment?

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I’m a famous person (no, I really am) and I really don’t want my financial information given to eight strangers on a co-op Board. Is there a way to avoid that?

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I’m the executor of the estate of a deceased shareholder. Do I have to go to the closing?

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I just graduated law school and have a job with a large law firm. I have a significant salary, but no liquidity or significant assets. Will I be able to buy a co-op?

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The listing indicates that the apartment has “roof rights”. How can I be sure?

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When buying a condo, is it worth the time and effort to get an assignment of the seller’s mortgage?

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The Seller removed an expensive chandelier right before Closing. Is that permitted?

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My husband and I found an apartment we love, but there’s a bidding war. Should we participate?

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We love the apartment, but the building has bad financials. Should we go ahead?

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My closing is in December, but the lease for my apartment does not expire until the following March. What do I do with my lease?

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We are buying a condo, but we have a delayed closing as the seller has a tenant in place for the next six months. We will be able to retain our loan commitment for an extended period of time?

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Should my husband and I take title as tenants by the entirety, tenants in common or as joint tenants?

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When a gay couple buys the shares of a cooperative or buys a condominium apartment, what is the best way to hold title?

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I have not been able to make my co-op mortgage payment for the past three months. If the bank declares my loan in default, how long will it take before the bank forecloses on my apartment?

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A co-op owner asks: I have found that maintenance is usually higher in coops than in condos because of the contribution by the shareholders to the building's underlying mortgage payments. In condos, the unit owners only pay for real estate taxes and common charges for common areas. Will the monthly maintenance be reduced after the underlying mortgage has been fully amortized?

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Can a corporation or other business entity own the shares of a cooperative apartment?

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I’m buying an apartment in a building designated as a “landmark.” Should I be concerned?

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I am buying a co-op that needs major renovations. The super has offered to do the work at a significant discount. Is that a good idea?

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We just submitted the Board package and we realize that we neglected to disclose a lawsuit against my husband’s company, in which my husband is named as a defendant? The lawsuit is covered by insurance and my husband is indemnified from liability by his employer. Should we notify the managing agent and amend the purchase application?

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We are negotiating the contract and we just found out that there is a substantial assessment that will go into effect the month that we close on the purchase. Should the assessment be deducted from the purchase price at closing?

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The bank attorney was two hours late to the closing. Was that my attorney’s fault?

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I’m buying a cooperative apartment in Manhattan, but I move out to the Hamptons from June to the end of September each year. Will I be able to sublet the apartment each year when I’m away?

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I just got the purchase application package and it's twenty pages long. Should my broker be helping me with organizing the required documents?

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It’s the day before the closing and I just found out that the maintenance for the apartment is higher than the maintenance stated in the contract. Is that grounds to terminate the contract?

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The financials for the condo are more than a year out of date and there is a delay issuing the new financials. Should I be concerned?

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The contract requires “official bank funds” in the form of certified or official bank checks. Can I bring “official" checks from my brokerage account?

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My parents want to buy me an apartment while I’m in graduate school in Manhattan. Will a co-op allow me to purchase the apartment, if my parents are co-owners?

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I obtained sole ownership of my condo in my divorce, but the deed for the apartment is still in both of our names. Will my ex-spouse’s cooperation be required when I’m ready to sell the apartment?

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I just found out I have to pay a fee to have my mortgage recorded. Is that right?

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I am buying an apartment in a small building and I just found out that the elevator is being renovated and will be out of service for three months. Do I have to close if the elevators will not be operational on the closing date?

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My husband and I own a co-op and we would like to transfer the shares to an irrevocable trust that we recently created for estate planning purposes. Will our cooperative allow us to make that transfer?

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The seller is a foreign citizen and does not have a social security number. Does that prevent the seller from selling the apartment?

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An “assessment” was imposed by the co-op Board after the contract was signed. Is payment of the assessment the seller’s responsibility?

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There is a leak in my apartment and the Resident Manager is not being responsive. Should I call the Board president?

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I just bought an apartment and I am only refinishing the floors and repainting. Do I need the consent of the Board before I get started?

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The co-op I’m interested in is pet friendly and I have a dog. Is there any chance the Board could approve my application without approving my pet?

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We purchased our apartment in January, but our first mortgage payment is not due until March 1st. Why isn't the first payment due February 1st?

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I’m buying an apartment from a sponsor and the contract does not provide for a “mortgage contingency”. Is that a provision that I can negotiate into the contract?

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I am buying an apartment from a sponsor and the contract provides for the buyer to pay the sponsor’s transfer taxes and legal fees? Is that normal?

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I'm buying a condo and my attorney just ordered the "title report". What's a title report?

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There is a leak in my apartment and the Resident Manager is not being responsive. Should I call the Board president?

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My boyfriend and I are interested in buying our first apartment in a new construction condominium. Our mortgage broker tells us we should qualify for a 90% loan, but it will be a close call for the bank. The sponsor wants us to sign a “no contingency” contract. Is that a good idea?

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We are considering a condo purchase in a new development that is only 25 percent sold. There is a bank that has approved the project and will make the loan, but should we be concerned about the number of units that the sponsor still has to sell?

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We are buying an apartment that has been extensively renovated. Among other things, the size of the master bath was significantly increased. Can we rely on a representation in the contract that all required approvals were obtained from both the Cooperative Corporation and from the New York City Department of Buildings?

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We received a draft of the contract of sale for the cooperative apartment we are buying and our social security numbers are on the front page! Our attorney told us that we will have to provide our identification numbers to the managing agent for a credit check as a part of the Board package, so it’s not a big deal. Do we have to list our socials on the contract?

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The listing stated that the apartment was 1,100 square feet, but the appraisal measured the apartment at 900 square feet. Can we cancel the contract and get our money back?

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I'm about to pay off my co-op loan. What evidence will I have from the bank that the loan has actually been paid off?

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I am considering an apartment in a new construction condominium. There is park under development by New York City that will greatly enhance the value of the condominium when it’s completed. Although the sponsor’s salesperson indicated that the first phase of the park will be completed in the next year or so, the Offering Plan contains a “Special Risk” that states that the sponsor gives no assurance as to when, if ever, the park will be completed. Who and what should I believe?

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We are in negotiations to purchase a co-op apartment on the Upper East Side. Our lawyer reviewed the minutes and discovered that the building has a bedbug infestation. Should we go forward with our purchase?

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My purchase application was approved by the co-op Board, but it is conditioned upon my providing a maintenance deposit and guaranty by my parents. Do I have to comply with the conditions?

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At my closing, I had to reimburse the Seller for his New York State “STAR” rebate that appeared on the maintenance statement for the month following the Closing. What exactly is the STAR rebate and will I be able to obtain the rebate as well?

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I'm selling my co-op next month and my attorney aked me to "freeze" the line of credit I have with my bank. What exactly do I have to do?

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I just found out that the seller will be unable to close for an additional two weeks. As a result, I will have to extend my rate lock, at a cost of $1,200.00. Is the seller obligated to reimburse this cost?

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I am buying a new construction condo and the Offering Plan is over 400 pages. Do I need to read the entire Offering Plan?

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We ran across a co-op that has a few “sponsor owned” apartments for sale. Is there any advantage in buying one of the remaining sponsor apartments?

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I am about to make an offer on an apartment, but I have not been provided with the current financial statements for the co-op. Am I entitled to review the financials before I make my offer?

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We are selling our apartment to our neighbor, but our neighbor can’t afford to purchase our apartment unless she sells her apartment. Her lawyer wants the contract to provide that the purchase of our apartment is contingent upon the sale of her apartment. Our lawyer is advising us against including a provision that makes the transaction contingent on the sale of the buyer’s apartment. Should we go along with the contingency?

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We are selling our co-op and the buyer is not obtaining a mortgage in connection with the purchase. The contract required the Board package to be submitted within 10 business days after the fully-executed contract was returned to the buyer. The buyer is two weeks late in submitting the package. Is the buyer in default?

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I’m selling my condo and I have not been able to pay my common charges for the past six months (I lost my job). I have a buyer for the apartment, but the Board of Managers will not release the Waiver of the Right of First Refusal, unless I pay the outstanding balance of the common charges. I’m between a rock and a hard place, as I don’t have the money. What should I do?

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I am combining two adjacent apartments that I own and I want the co-op to issue one stock certificate for both apartments. There is an outstanding UCC lien against one of the apartments. The other apartment is owned free of any liens. Can the co-op object to the combination?

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My attorney asked me to contact the managing agent to verify the maintenance and assessment information that's disclosed in the contract for the apartment I intend to purchase. Isn't that my attorney's job?

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Our application to purchase a co-op was turned down by the Board without an interview. Although our attorney asked the managing agent to disclose the reasons for the Board’s decision, none were given. Can the Board just turn our application down without any explanation?

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My bank issued a loan commitment, but then withdrew its underwriting because private mortgage insurance was not available. Will I have a problem canceling the contract and getting my deposit back?

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The seller has a storage bin, but the contract indicates that the apartment does not come with a storage bin. If I buy the apartment, can I be sure that a storage bin be avaialable?

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I’ve been asked to serve on the Board of my co-op. Could I be held liable if the co-op is a party to a law suit?

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I am buying a co-op in Manhattan. The managing agent is located in Brooklyn and refuses to send a closing representative to the attorney’s office for the buyer or seller located in Manhattan. Will everyone have to go to Brooklyn for the closing?

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We are purchasing a condo that was occupied by a tenant at the time the contract was executed. We just did the walk through and there is damage to a portion of the floor that was hidden by the tenant’s furniture. Are we entitled to a repair credit at Closing?

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A loan commitment was issued, but the bank requested an explanation for a $14.00 missed credit card payment that occurred nine years ago. Could the bank withdraw its commitment as a result of this missed payment?

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I'm selling my co-op, which I own with my mother and father. Is it okay to have the closing checks made out to the three of us?

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A leaking pipe inside the wall of my co-op was recently replaced. The following month, my maintenance account was charged $1,000.00 on the theory that the pipe only serviced my apartment. Am I responsible for this repair?

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A condo buyer has a mortgage contingency, but the closing will not take place for six months as the seller has a tenant in the apartment. When should the purchaser apply for financing?

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Q

We submitted our Board package a month ago, but the Board has not scheduled an interview or asked for any additional information. To make matters worse, the managing agent won’t give us any indication as to what’s going on. Is there anything we can do?

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Q

My co-op contract included the seller’s flat screen, but the bank underwriter required that it be removed from the contract as it was “impacting” loan to value. Can the bank do that?

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Q

I am buying an apartment in a small co-op that is self managed. How does the bank obtain the required “co-op questionnaire” in order to complete its underwriting?

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