Find an Appartment
TYPICAL TIME FRAME: 3-6 MONTHS
Depending on what you are looking for, the length of your search will vary. The average person sees 20-25 apartments before deciding on one. period while seeing 25 apartments.
NEGOTIATE ON THE APARTMENT
Everything is negotiable so inquire about assessments, fixtures, window replacements, air conditioners, rugs, floors, curtains, appliances, working fireplaces, washer dryers, etc. Apartments are delivered ‘swept clean’.
SIGN A CONTRACT
A separate New York City real estate attorney represents each buyer and seller. The seller’s attorney draws up the contract for the buyer’s attorney; the buyer’s attorney does “due diligence” – reading minutes, financial statements, etc. The buyers sign the contract and forward the contract with a 10% deposit; the sellers execute the contract.Possible contingencies: financing, board approval, closing dates . (See our list of closing costs associated with buying and selling condominiums and cooperatives.) The quicker the contract can be signed, the better. A contract is binding only after both parties sign it.
COMPLETE AN APPLICATION
Cooperative apartment buildings require board approval before a closing can take place. Condominiums require an information packet to be completed before a closing can take place. In order to review a potential purchaser, the Board of Directors for a Coop demand extensive information in a Board Package. Most Boards request the following information: full financial disclosure (net worth) with supporting documentation, employment history, current salary, personal and business references, tax returns for the previous 3 years, credit history, etc. If a purchaser cannot or does not want to supply this information, he/she should buy a condominium. Board packages/Condo applications are given to potential purchasers to fill out after a contract has been executed. If there is no financing, it usually takes about 2-4 weeks to gather the information for the Board package or Condominium application.
MANAGING AGENT’S REVIEW
After the buyer’s real estate agent completes the Board package, he/she will forward the package to the managing agent of the building. The managing agent will inspect the package to ensure it is complete. The package will then be forwarded to the Board of Directors of the Coop. After the Board reviews the package, they will decide if they would like to meet the potential purchaser.
MEET THE COOP BOARD FOR AN INTERVIEW
Coop Boards typically meet once a month, and some Boards do not meet in August. Every Board is different, but generally a Board Meeting will be held in the evening on a weeknight.Although a Board interview may be granted, this does not guarantee Board approval.
SCHEDULE A CLOSING
Managing agents generally set the date for closings, and lawyers for sellers and buyers coordinate with the appropriate banks on available dates and times. Typical time frame from when an apartment is found to the closing is 3-5 months.