If you are moving, you likely want to transition to your new home as immediately as possible. However, you must first close the sale of your previous home. Read on to discover what steps to take to close a co-op and how a seasoned New York City real estate attorney at Zimmet Law Group, P.C. can guide you through this process.
What is a co-op?
First of all, a co-op, otherwise known as a cooperative, is owned by a corporation. Meaning, it is not considered real property. This is a fairly common concept in New York.
So when you buy a co-op apartment unit, you are not actually “buying” the unit. Instead, you are really “buying” shares in the corporation that is your building. And by buying into these shares, you are entitled to a proprietary lease of your apartment unit. Notably, the size of your share corresponds to the size of your apartment unit.
What steps do I take to close a co-op in New York?
Once you, the seller, accept the buyer’s offer of your co-op apartment unit, a deal sheet will be provided to both attorneys by the real estate agents. The elements of this deal sheet include, but are not limited to, the following:
- The co-op’s address.
- The co-op’s purchase price.
- The co-op’s financing requirements.
- The names of you and the buyer.
- The buyer’s down payment.
Each attorney will review the deal sheet and attach riders as they see fit. When this is squared away, then the buyer must immediately file the necessary documents with their bank to obtain a mortgage commitment letter.
Soon after, the buyer must submit a board application with the co-op management company. This application may require bank statements, tax returns, reference letters, and other relevant documentation. If their application is approved, then they will need to attend a mandatory board interview, where the board will officially decide if the buyer is approved or rejected.
During this decision process, the buyer’s attorney will order a lien search. This is so that no liens on the title will affect your interest, and so that your attorney will have enough time to clear or remove liens before closing.
And if the buyer is ultimately approved, you may begin signing and filing the appropriate closing documents to transfer the rights to the co-op apartment unit.
All in all, the closing of a co-op in New York typically takes 60 days. Extending circumstances may speed up or delay this timeline. Without further ado, you must retain the services of a competent New York City real estate attorney immediately. We can assure you that we will do everything in our power to make the closing of your co-op as seamless as possible. So contact us today.