Before You Buy A Condo or Co-op In New York

The Attorney General for the State of New York has posted information regarding things that a buyer should know before they purchase a cooperative apartment or condominium. Buying a home is one of the most important investments you will make in your life. It is important to not be intimidated and do your homework to know about the property that you will purchase.

The first step is to examine the prospectus. Regulations for cooperative apartments and condominiums in New York are governed by the State Attorney General of the State of New York. According to the Investment Protection Bureau - Real Estate Financing Section regarding the content of prospectuses for the sale of co-ops and condos require detailed disclosure by a sponsor of what is planned to be built for newly constructed properties, and detailed disclosure of the condition of the property for existing buildings.

NEW CONSTRUCTION

Here are some of the highlights from the website.

• Beware of Salespersons. Buyers must therefore carefully read the "Description of Property" section in the offering plan to determine the sponsor’s obligations and should not rely on advertising brochures, verbal statements from salespeople or beautiful pictures of architect’s renderings.

• ..Recreational Facilities: The Attorney General’s regulations require that such facilities be described in detail and that the offering plan include floor plans of recreational buildings, a description of equipment to be installed and details regarding size and materials to be used in the construction of such things as pools and tennis courts (whether they will be blacktop or clay, whether there will be outdoor lighting, etc.)

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  ....Landscaping: The regulations require that the landscaping be disclosed in detail, including such things as the number and type of trees to be planted, the approximate number of bushes, whether the grass will be sod or seeded topsoil, whether there will be an underground watering system, etc. However, in most developments sponsors install minimal but adequate landscaping, and when purchasers want an upgrade of this item they must pay for it themselves. ....Appliances and Amenities Within Homes: The Attorney General’s regulations require that the offering plan contain the brand name, the types and the model numbers of appliances to be installed, which give the buyer information on the quality of those appliances, and whether the home will contain any other amenities such as a fireplace or Jacuzzi. Keep in mind that if the item is not promised in the offering plan, the sponsor is not obligated to provide it and probably will not, except at substantially higher prices. Offering plans frequently state that the sponsor can substitute equal or better appliances, but not appliances of lesser quality. ....Siding: Low rise homes can have various kinds of siding: wood (pine is cheapest, cedar is the most expensive; plywood is not as good as lumber), vinyl (cheaper than wood and costs less to maintain), or brick. ....Frames: Most low rise homes are wood framed but some are steel with concrete floors; buyers should know how their homes are built. ....Common Areas: For townhouse type developments that have grounds around the homes, buyers should read the disclosure in the offering plan with respect to roadways (the thickness of each layer should be listed) and whether they will continue to be owned by the condo or dedicated to the town or village; sidewalks, if any; drainage systems; and retaining walls. Occasionally there are discrepancies between what is listed in the plan and what is provided, and buyers need to know what is in the plan.

  Test all of the appliances

Check to see if you are getting quality that was stated within the offering plan. Many builders state that they use top quality material but may be using second rate materials. It is up to you to check out whether you are getting what the builder advertised in the offering plan. This is done by checking with the manufacturers listed on the appliances or materials and manufacturing numbers. For example, the offering plan will state the manufacturer and model number of windows to be installed. A phone call to a window supplier listed in the telephone directory can reveal to the buyer whether the windows are top quality or merely serviceable. Similar inquiries can be made regarding the heating unit, the hot water heater, the air conditioner, and the kitchen, bathroom and laundry room appliances. An investigation revealing these items as of average quality does not render the home necessarily defective. However, the price of the home should reflect that quality.
Buying An Existing


An important suggestion that is not included in the Attorney General's information is to consult with an experienced real estate attorney before you purchase your condominium.

For more information visit the website of the Attorney General for the State of New York.