Everything to verify before purchasing a co-op or condominium in New York City.
Obtain and review the offering plan (and any amendments) from the NYS Attorney General office. The offering plan discloses building financials, unit details, sponsor obligations, and rights/restrictions.
Review the building annual financial statements (audited). Check the reserve fund balance, outstanding debt, planned capital improvements, and any pending assessments. Inadequate reserves signal future special assessments.
Request the last 2-3 years of board meeting minutes. These reveal ongoing issues, planned projects, disputes, and financial decisions. Look for patterns of deferred maintenance or contentious board dynamics.
Search DOB and HPD for building-wide violations. Open violations may indicate deferred maintenance that could result in special assessments to unit owners. Check for active complaints as well.
Review the building master insurance policy. Confirm adequate coverage for the structure, liability, and directors/officers. Check for recent claims that may affect premiums.
Read the house rules, bylaws, and alteration agreement. Understand restrictions on renovations, subletting, pets, and other matters that may affect your use of the unit.
Ask the managing agent about any pending or threatened litigation involving the building. Lawsuits can affect building finances, insurance costs, and property values.
Research the building management company. Check reviews, complaints, and their portfolio. Good management significantly affects building condition, finances, and quality of life.
For co-op purchases, prepare a complete board package: financial statements, tax returns, employment verification, reference letters, and personal statement. Allow 4-8 weeks for board review.
For condos, conduct a standard title search. For co-ops, perform a lien search against the building. Also search for any UCC filings against the cooperative corporation.
Buying a co-op or condo in NYC involves unique due diligence beyond a standard property purchase. The building financial health, board governance, and common area conditions directly affect your investment and quality of life.
RegWatch provides instant access to building violations, permits, complaints, and ownership data. Research any co-op or condo building before committing to a purchase. Monitor your building after purchase to stay informed of new issues.
RegWatch automates many of these checks by aggregating data from DOB, HPD, ACRIS, and other NYC agencies. Save hours on every property.
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