New York City Buyers Guide

 

New York is a city comprised mainly of cooperative and condominium apartments with a smaller selection of private homes, we call townhouses or brownstones. 

 

STEPS TO PURCHASING AN APARTMENT

The steps to purchasing a co-op or a condominium in Manhattan are very similar. Let us assume that you have found the property on which you wish to place an offer and that you have spoken to a lender or mortgage broker (if financing) to determine financing price level. It is advised that you pre-qualify for a mortgage with a lending institution or brokerage firm prior to your housing search.

 

1. Offers are made orally in New York City. When buyer finds a property, offer will be placed through PAIP agent. Offer will be conveyed either to seller's agent or directly to the seller.

2. Seller may "counteroffer." This will begin the process of negotiation to reach price, terms, and closing date.

3. Use of a real estate attorney is advised in all property transactions in New York City. Contact an attorney familiar with NYC real estate to represent you.

4. Legal counsel will perform the following: contract negotiation, examination of building's financial and by-laws and contract preparation.

5. When contract is agreed by both seller and buyer's counsel,  your attorney will agree for you to sign the contract. At that time, deposit of 10% will be submitted together with your signed contract. 10% deposit will be held in the attorney's (seller) escrow account until closing. *****NOTE: Unless all parties signed the contract and delivered, seller can entertain and accept other offers.

6. If purchase will require financing, loan application should commence. PAIP agent can assist you in finding a lender or mortgage broker.

7. Filling board requirements and application materials should begin at this point of the process. Complete all required materials which will generally include application forms, financial statement, support documentation, two-three years of tax return, bank/financial statements, business and personal letters of reference, contract of sale, financing documentation.

8. Upon completion of application package, PAIP agent will review and forward package to building's managing agent for inspection. Consequent to clearance of documentation and credit check, application will be forwarded to the Board of Directors. Managing Agent will not accept incomplete application.

9. If application is for a cooperative, buyer will be invited for an interview with the Board. As a rule, condo building's do not require board interviews. 

10. Upon board approval from a coop and 'right of first refusal' is signed from condo board, closing process can commence.

 

Entire process from search to closing typically takes 60 to 90 plus days.