NYC Buyers Guide

NYC BUYERS GUIDE East Side Manhattan Brokerage 650 Madison Avenue New York, NY 10022 212.606.7660

Downtown Manhattan Brokerage 149 Fifth Avenue, 4th Floor New York, NY 10010 212.431.2440

Cooperatives vs. Condominium COOPERATIVE

CONDOMINIUM

ownership

ownership

Purchasing shares of stock & a proprietary lease

Own the real estate comprising your apartment

application process

application process

Requires board review of application and interview of purchaser

Requires board review of application

approval

approval

Can accept or reject purchaser without giving reason

Have right of first refusal: The condo board can review purchaser but cannot reject without exercising right of first refusal to purchase the apartment

fees Maintenance Fee - includes utilities, building insurance, property tax and staff salaries

fees Common Charges: Building operating cost, management fees Real Estate Taxes: Taxes levied on apartment

downpayment & finances after purchase Variable & building specific - sometimes financing not permitted

downpayment & finances after purchase Most require 10% down payment and proof of funds to purchase

Terms & Fees To Know assessments: An amount of money that a condominium/cooperative trust needs owners to pay in order to finance a project or outstanding debt that was not part of the annual budget. These projects are for the common good of the building whether it be hallways, lobbies, roofs, mechanical systems, water or even the building façade work.

common charges: A condo fee that includes building operating costs and management fees. flip tax: A fee paid by a seller or buyer when purchasing in a co-op. It is not a government tax. It is a transfer fee to profit the building on the sale on an apartment. Flip tax can be negotiated or a co-op will have a strict rule on whether buyer or seller pays.

maintenance fee: A co-op fee that includes utilities, building insurance, property tax and staff salaries. A percentage can be tax deductible but varies by building.

mortgage contingency:

A provision in a purchase contract saying that if the prospective buyer cannot get a mortgage within a fixed period of time with the specified terms, the buyer can call off the whole deal and get back his deposit.

property tax abatements:

The government grants a reduction or exemption from taxes for a specific period in order to stimulate real estate or industrial development. The most common is 421a - this exemption lasts for 10 years, giving owners a 100 percent exemption from any increases in their real estate taxes for two years, then phasing out the exemption by 20 percent every two years over the remaining eight years.

In Upper Manhattan and the outer boroughs, the exemption can last for 15 or 25 years.

proprietary lease:

A lease given by a cooperative corporation that provides the share owner with the right to live in a particular

unit or apartment.

real estate taxes: For a condo, this is a separate NYC tax bill. subletting: Leasing to a subtenant. Ex: If you own a co-op

you’re subletting to a renter because you have a proprietary lease with

the co-op.

Timeline To Closing

Pre Approval

Offer

Negotiation

Offer Acceptance

Contract

Financing

Board Approval

1 - 2 DAYS

1 - 3 MONTHS

1 WEEK

1 - 5 DAYS

2 WEEKS

1 MONTH

7 - 45 DAYS

Clearance to Close 1 - 2 WEEKS

Closing 1 - 3 HOURS

© Sotheby’s International Realty, Inc. All rights reserved. Sotheby’s International Realty® is a registered trademark. This material is based upon information which we consider reliable but because it has been supplied by third parties, we cannot represent that it is accurate or complete and it should not be relied upon as such. This offering is subject to errors, omissions, changes including price or withdrawal without notice. If your property is listed with a real estate broker, please disregard.

It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. Operated by Sotheby’s International Realty, Inc. Real estate agents affiliated with Sotheby’s International Realty, Inc. are independent contractor sales associates and are not employees of Sotheby’s International Realty, Inc. Equal Housing Opportunity.

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