• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Co-op question

I

isasir

Diamond Member
So I've done some reading and I still don't understand what the phrase, "Sale May Be Subject To Term & Conditions Of An Offering Plan" means. Can someone explain why only some listings have this and others don't? (This is in NY, btw)
 
My guess is that it's an "out" placed by the seller in case certain substitutions are necessary (cheaper). That way the broker can talk it up, make the sale and then cannot be held liable when Formica is substituted for granite.

Obviously, you need to read the offering plan or have a lawyer do it.
 
What I don't get though is that the place is completely renovated. I believe it used to be a sponsor unit and I guess work was done on it. The way it looked was fine though when I went to the open house. So I'm not sure where substitutions would come into play. Therefore, I don't get what the offering plan would say that wasn't necessarily already done?
 
Originally posted by: mugs
Perhaps you should read the "terms and conditions" of this so-called "offering plan." It sounds as if the "sale" of the co-op "may be subject to" the aforementioned "terms and conditions."

I imagine you would obtain this document from whomever owns the building. 🙂


Quick google search links:
http://www.whafh.com/modules/publication/?action=view&id=30
http://www.oag.state.ny.us/realestate/physical_aspects.html

Looks like you may want to have a lawyer review it.
Click to expand...


Yeah I saw those links on Google, but, as indicated in my message above, I'm not certain how they apply in this case. I could call and ask the real estate agent, but I question how forthcoming she'd be with correct information.
 
Originally posted by: isasir
What I don't get though is that the place is completely renovated. I believe it used to be a sponsor unit and I guess work was done on it. The way it looked was fine though when I went to the open house. So I'm not sure where substitutions would come into play.
Click to expand...

My understanding is that the offering plan is really only important for new construction or some type of conversion. Perhaps it's just left over terminology? If you can inspect the actual finished property, then you have a lot less to worry about. Since you are in NYC, why not have your lawyer look at it if you are serious?

 
Well I just went to the open house two days ago, so I'm not at a point where I need to have a lawyer review anything. I'm still learning as much as I can on co-ops and just didn't understand why the offering plan was even mentioned.

The RE agent did say it was a sponsor unit, so I guess maybe it needs to be checked that whatever renovations that were done meet spec with the offering plan to become converted to co-op? (Dunno if that even made sense)
 
Originally posted by: isasir
Well I just went to the open house two days ago, so I'm not at a point where I need to have a lawyer review anything. I'm still learning as much as I can on co-ops and just didn't understand why the offering plan was even mentioned.

The RE agent did say it was a sponsor unit, so I guess maybe it needs to be checked that whatever renovations that were done meet spec with the offering plan to become converted to co-op? (Dunno if that even made sense)
Click to expand...

But if it's already a co-op, then it should be subject to the offering plan. Are there other amenities which are attached to certain units (parking, storage, etc..)? I would make sure that these things are actually in the offering plan and the by-laws. If you are serious, you would need to have a lawyer look these things over before you sign a contract.

A sponsor usually has a ridiculous amount of power to change things until they sell off the last of their units. I don't think you can ever be too careful when purchasing a unit the sponsor has held onto. They may very well have taken shortcuts since their primary motivation is $$.

I don't see how this relates to your situation but as an example of what a sponsor is capable of...in my condo, the sponsor transferred parking spaces from one condo to another when he started to sell off his units. In the end, he ended up with one apt owning 5 parking spaces and sold that unit, notifying the buyer of only one space. Then he continued to rent out and profit from the remaining 4 spaces while never paying RE taxes. He was not caught until a building audit last year.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top