BY JOHN KIRITSIS, ESQ., CPA, MBA, MS, JD, LL.M

A New York City (NYC) condo offering plan is a crucial legal document that outlines important details about the condominium project, its units, common areas, financial aspects, and other relevant information for potential buyers. It is a complex document that requires careful review and understanding. Here’s a guide to navigating NYC condo offering plans:

 

  1. Overview of Offering Plans:

An offering plan is a disclosure document provided by the developer to potential buyers of condo units. It contains detailed information about the project and helps buyers make informed decisions.

 

  1. Registration with the Attorney General:

Before marketing or selling condo units, developers are required to submit their offering plans to the New York State Attorney General’s office for review and registration.

 

  1. Required Information:

Condo offering plans are comprehensive and include information such as:

 

Description of the project and building.

Unit layouts, sizes, and amenities.

Common areas and facilities.

Legal structure of the condominium.

Budget, financial projections, and expenses.

Terms of the purchase, including pricing, deposits, and closing costs.

Disclosure of potential risks and conflicts of interest.

  1. Time for Review:

Potential buyers have a specified period (usually around 15 days) to review the offering plan before signing a contract. This review period allows buyers to fully understand the terms and conditions of the purchase.

 

  1. Contract Rescission Rights:

Buyers have the right to rescind (cancel) the contract within a certain period after signing if they discover information in the offering plan that is materially different from what was presented.

 

  1. Clarification and Expert Review:

Because offering plans are complex legal documents, it’s advisable for potential buyers to seek clarification and consult with legal professionals who specialize in NYC real estate law to ensure they fully understand the terms and obligations.

 

  1. Financial Information:

Offering plans disclose the estimated common charges, taxes, and other expenses related to the condo unit. Review these financial projections to understand your ongoing financial obligations.

 

  1. Amendments and Supplements:

Developers may need to amend or supplement the offering plan to provide updated information. These amendments should also be reviewed carefully.

 

  1. Understand Common Elements and Responsibilities:

Offering plans outline the ownership of common elements, responsibilities of the condo association, and any restrictions or obligations placed on unit owners.

 

  1. Legal Representation:

When purchasing a condo unit, consider engaging an attorney experienced in NYC real estate law to review the offering plan and guide you through the legal aspects of the transaction.

 

  1. Post-Purchase Implications:

Even after purchasing a unit, it’s important to keep a copy of the offering plan for future reference, especially when addressing issues related to building management, assessments, and disputes.

 

Navigating an NYC condo offering plan requires careful attention to detail and a thorough understanding of the legal and financial implications. Consulting with experienced legal professionals who specialize in real estate law can help ensure that you make informed decisions and avoid potential pitfalls.

 

 

Citations, References and Potentially Useful Resources for Further Information:

U.S. Constitution

New York State Constitution

Federal Securities Regulation

New York State Martin Act

New York Condominium Act

New York State Security Regulations

New York Business Corporation Law

New York Limited Liability Company Law

New York Uniform Partnership Act

Federal Internal Revenue Code

New York State Tax Laws, Rules & Regulations

New York City Tax Laws, Rules & Regulations

Winston Churchill Owners, Inc. v. Regents Real Estate Associates

Board of Managers of the Park Regis Condominium v. Park Regis Owners Corp.

Park Sutton Condominium v. 447 E. 57th St. LLC

28 E. 10th Street Corp. v. Veras

Riverside Syndicate, Inc. v. Munroe

Essex House Condominium v. Marks

The Parc Vendome Condominium v. Atkinson

54-56 Meserole Street Owners Corp. v. Rossi

The Beekman Regent Condominium v. Bottiglieri

Chelsea 19th LLC v. West 19th Street Realty LLC

ACRIS

New York Department of Finance

New York City Department of Buildings

New York City Bar Association

New York State  Bar Association

Call 212 922 0005. Kiritsis Law Group.

Manhattan Office: 633 Third Avenue, New York, NY 10017. Phone# 212 922 0005.

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Feel free to call us at 212-922-0005 for a free, brief and confidential consultation.

Whether buying real estate, having years of un-filed tax returns, have an immigration question, considering to start a business, faced with a commercial/business dispute or thinking about getting a prenuptial agreement — Our law firm is willing, able and ready to assist you.  Call us at 212 922 0005.

We represent businesses and individuals throughout the 5 boroughs of New York City and most of New Jersey.

 

For a free, brief initial phone consultation with an attorney, call us today at 212 922 0005.

 

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