Most people obtain financing when purchasing a
house, condo, or co-op. In that case, the contract of sale will contain
a mortgage contingency clause making the sale contingent upon the buyer
obtaining a mortgage in a certain amount. If the buyer's loan
application is denied by the lending institution, the buyer can then
cancel the contract and get the down payment back.
order to benefit from the protections allowed by the mortgage
contingency clause the buyer must strictly abide by all its terms, i.
Whether you are buying or selling a home, your team of expert advisers
should include a real estate closing attorney. Real estate closings are complicated matters and require a thorough knowledge of the law.
With a decision as serious as buying and selling real estate, it is
important that you are guided throughout every step of the
closing process by an experienced and knowledgeable real estate lawyer.
The purchase of a home
is often the single largest financial transaction you will
ever make in your life.
News About the Cooperative/Condominium Abatement
the NY State Legislature passed bill S2320/A3354, which amended the
Co-op/Condo Abatement. For more information and a description of
changes, click here
Owners of cooperative units and condominiums who qualify for
the Co-op/Condo Property Tax Abatement can have their property taxes
reduced. The amount of the abatement is based on the average assessed
value of the residential units in the building.
It is a commonly accepted practice for home buyers to purchase title insurance. Title insurance provides buyers, and their lenders with coverage up to the full purchase price of a home in the event a valid title claim is instituted against the property. Buyers of co-ops, however, rarely purchase title insurance.
Since co-op buyers are not purchasing real estate, but rather shares in a corporation – accompanied by a proprietary lease that gives the buyer the right to live in the co-op, traditional title insurance would not cover the buyer's ownership interest in the shares.
Anyone who has been in the market to purchase either a condo or co-op is acutely aware that it is easier to buy or sell a condominium than a co-op because transferring ownership of a co-op almost always requires the consent of building's board, while the transfer of a condo usually does not.
Since a co-op is not real estate, the board can control who lives in the building by controlling who is allowed to become a shareholder and proprietary leaseholder. So long as the co-op board does not violate laws against discrimination, it is free to grant or withhold its consent to the sale "for any reason or no reason at all.