…..is the OFFERING PLAN. Time and again we see that many people have been burned by this. In short, the Offering Plan is a “book” thats huge and is filed with the New York State Attorney Generals office. Think of it as the instruction manual and code of conduct all thrown into one lovely large volume. It lists the rules of the Condo, including who has control of the Condo Board initially, how many people can get a garage spot, how much the sponsors believe electricity will cost. It lists…everything. So, whats the problem? The problem is that many new purchasers overlook this book (some attorneys may be guilty of this as well.) Some will say “Every offering plan is the same. Once you’ve read one, you’ve read them all!” Not so. Not even close.
One of the most important aspects of the offering plan is that it lists what you, the Purchaser in New York, is responsible for paying for at the closing. Typically, in most real estate purchases in New York, the Purchasers pays their own attorneys, mortgages taxes, and a few other fees. Not so with new construction. Here, you might have to pick up the tab for the Sellers (Sponsors) transfer taxes to New York City and New York State. You might have to chip in to pay THEIR attorney…as well as yours. Lovely. You may also have to pay for tax abatement fees, offering plan fees, fees of fees fees. Im serious. There is a ton in there. It literally can cost tens of thousands of dollars if you go into this blind. Soooo…what do you do? Clearly, you read the book on your own in addition to your trust New York City Real Estate Attorney reading it. You need to come in armed with questions. You need to ask your attorney to explain each fee, etc. You’re buying something that you’re going to live in for years, so you want to know exactly whats going on.
Which brings me to my next point. If you see that the attorney that your Real Estate broker may have recommended isn’t giving you the time of day on the phone. This may be an indicator as to how much time the attorney will devote to your questions. It may not be though. The attorney might be great. My point is you have to be 100% comfortable with who you choose. This isn’t a pitch in any way, but I can tell you that we go through each offering plan because I’ve seen, firsthand, what happens at a closing when someone…shall we say “goofs”. Its not pretty. And no client needs to ever be in that position. So make sure you ABSOLUTELY read the Offering Plan on your own, and hire a real estate attorney in New York City you feel confident will do the same.
Good luck!
