Condominium Buyers

Introduction
 

     In New York there is a "standard" form of agreement for the purchase of a condominium, which was developed by a publisher of legal forms along with a committee of lawyers interested in the subject. The use of this form is not mandatory, but its use will speed up and simplify most transactions. You can buy the form in many stationary stores which carry legal forms. Be sure to use a current version!

     This section will list the deal points covered by that form for you to consider. There is no universally correct or incorrect answer on how to resolve each issue from the point of view of the buyer. It depends on the needs and goals of the parties to each transaction.

>>>>>>>>>>                    The Standard Contract Paragraph by Paragraph                <<<<<<<<<<

Does the Buyer "Need" Counsel?

     The buyer is not required to have a law firm represent it. However, unless the buyer is fully comfortable with the items listed above (and such new issues which exist because of the specifics of the deal), the buyer should have counsel.

     Before signing the contract, the buyer also should consider consulting with these non- attorney advisors:

  • Accountant on tax matters
  • Banker on mortgage matters
  • Engineer (for an inspection of the unit and/or building of which it is a part)
  • Insurance broker (to consider cost and necessity of homeowners, umbrella, or other insurance for buyer
  • Architect (if renovations are planned)
  • Title Insurer (to insure title to the new unit -- usually obtained through Buyer's counsel)

     There is much factual investigation about the unit which a prudent condominium buyer will perform before signing a contract (even the "standard" contract) to purchase a condominium apartment. This investigation can be performed by the buyer or the buyer's counsel. Here are some key terms which might trigger questions to ask: business use of apartment; future leasing for profit; dogs and cats; limits on mortgage financing; contemplated renovations; roof leaks!

     There is much factual investigation about the building's physical plant which a prudent condominium buyer will perform before signing a contract.

     There is much factual investigation about the legal documents by which the condominium is organized and operates which a prudent condominium buyer will perform before signing a contract.

     Counsel can assist on these inquires.