Coop contract..help / advice?
Before anyone has a chance to say it..yes I searched the heck out of the boards and I’am “heavy” with information on soo many informative coop “things”..yet I could not find an abundance of closing/contract info specifically on coops… Any suggestions or considerations would be greatly appreciated… I just received my contract for a coop(first…
Before anyone has a chance to say it..yes I searched the heck out of the boards and I’am “heavy” with information on soo many informative coop “things”..yet I could not find an abundance of closing/contract info specifically on coops…
Any suggestions or considerations would be greatly appreciated…
I just received my contract for a coop(first time buyer)..I have a lawyer that my parents used for there house purchase(s)…he seems good and price is fair..but still I have my reservations and being the control freak well…
The lawyer states this is a sponsor unit…so the process will go quicker as board approval will not drag the process out..the building is going coop(I believe I’m one of maybe 3 persons) who has purchased an apt(out of 40 in building)..thus far..within last 6 months..financing has pretty much been guaranteed by buildings bank..half decent rate and all…
my questions are:..what should I look for in the contract that is flat out unacceptable for us responsible buyers..if this does exist at all..
What should i consider adding that is usually not there initially..
Are there flag words(age) that just screams Runaway…
What can I expect closing fees to be on a $250k apt..is there a reliable estimator out there..I hate surprises..
I attempted to read over the contract (including its ammendment pages) and all seems ok..the buildings broker has been spot on and very attentative with everything..ie faxes, paperwork whatever I need and returns every call..she is across from my future building so this helps…
If I’m way off base here(being overly paranoid) please let me know…if anyone has any other ideas please feel free to type away….or add links…
Thanks
Hopefully the building will be majority owner at some point..it has just gone coop recently hence the plethora of renters..
I had no problem getting mortgage offers from several banks..but ended using the buildings bank for various reasons..Is that bad?
Thanks
aside from the financial problems that may exist in a co-op building with rent-regulated tenants in some apartments (since the renters usually pay less than the co-op needs for mortgage payments, etc.) the real problem becomes selling the unit down the road if there are still a lot of tenants in the building. banks like to see at least 75% of the building being owned by shareholders. the more renters there are, the harder it may be for a new buyer to get a mortgage.
Anonymous 5:01..absolutely valuable..
I agree with your line of thinking..
Do those renters change the overall dynamic of the coop? If so in what way?
Although the simplistic answer would be to assume that “rent” always goes toward the overall building in the same way Maintenance does..
But is it that simple?
I believe any building going coop will eventually have all coop apts. even if its just a matter of time..However I have heard of an seen hybrid buildings that function as both rentable and coop apts..
So maybe someone will get back to us on this..
Thanks
I have never bought a co-op so i don’t know how valuable this advice is, but if i were in your situation i would want to know if any of the rental apartments in the building are rent controlled or stabilized. I am not sure how co-op conversions work but i am fairly certain they do happen in buildings with rent controlled and stabiliized tenants. I would also want to know if there are rent stabilized or controlled tenants how they affect the maintenance that is charged by the building? Do the co-op owners end up subsidizing rent controlled and stabilized tenants when the building needs improvements? How does this work? (i hope these are valid questions and i am not just adding to your confusion).
I don’t know if you are buying in Brooklyn, but if you look through the archives you will find a bunch of lawyer recommendations. Look for someone in the neighborhood your are buying into. If their are a lot of co-ops in the neighborhood, there will be a few real estate lawyers.
These questions always seem to come back to lawyers..
How does one find a reputable not overly busy personable fairly priced lawyer that is intimately familiar with coop law..
It would seem to me that the good ones are very busy..and the majority that know coop law practice out of Manhattan to make the most off those manhattanites buying $1m+ coops;so they are out of the majority price range..
Anon 10:24 again – is your lawyer familiar with co-ops in NYC? You may want to get someone who is intimately familiar with them esp. going over the offering plan, etc.
Anon 10:24, so you may have to replace those appliances pretty soon.
As is for a sponsor sale is common. You can sign the contract anytime, but I wouldn’t do it until your lawyer has done due diligence (i.e. looked through offering plans and minutes and financials). Because so few units have been sold, I would wait until your lawyer has gone through these docs. If the deal doesn’t look good, you are on the hook for your lawyer’s fees. Be aware that in NY, nothing is binding until both parties have signed (with the deposit).