7. What are the financing requirements when purchasing a co-op? [TOP]
Each building has its rules as to how much financing a purchaser is allowed. It is best to get this information from your broker. Most of the buildings between Lexington and Fifth Avenue and along Central Park West do not allow more than 50% financing. Some buildings on Fifth and Park Avenue do not allow financing at all. Nevertheless, there are still a good number of buildings that allow up to 80% financing.

8. Is there a net worth requirement necessary for passing a co-op board? [TOP]
Co-op boards scrutinize the asset and liability statements of applicants in order to insure that the applicant has ample cash reserves remaining after purchase. Once again, each building is different and since these are private corporations, they tend not to put their specific net worth requirements in writing. It is best to check with the managing agent of the building or consult your broker.

9. How does somebody make an offer? [TOP]
Offers are generally made orally, although it is recommended that they be put in writing and submitted to your agent. When making the offer, it is important to state the price, the terms of the sale i.e. financing, closing date and personal property included. Appliances, air conditioners and blinds are customarily included. Excluded are chandeliers, sconces and window treatments. A buyer profile should be included that states job position, salary and bonus.

10. What can I do to prepare myself for a bidding war? [TOP]
The best thing to do is to find an experienced agent. The second best thing is to give your agent a detailed asset and liability statement, a typed biography on yourself and a list of personal and business references. The references should be from well-respected individuals who have known the purchaser for a length of time and who would be willing to write a reference letter. In a competitive bidding situation, often the best offer wins but sometimes the seller considers which buyer has the best offer combined with their potential for passing the co-op board. Sometimes the best package wins and selling yourself as a solid buyer can help you get the apartment.

11. What am I looking for in a building's financial statement? [TOP]
When purchasing an apartment it is important to look at the financials of the co-op or condo. Financial statements will tell you about the building's underlying mortgage, its interest rate and when it comes due. Refinancing an existing loan can lead to higher monthly maintenance fees. Financials will inform you of any pending lawsuits from tenants or other parties. Financial statements will also tell you how much money is in the building's reserve fund. This is money set aside for future repairs. These are some of the major highlights of the statement.

12. What are tax abatements? [TOP]
Many condominiums enjoy the benefit of real estate tax abatements. 421-A is a program in which taxes are phased in over a 12-year period. Generally, taxes are not paid for the first two years and then they are due in 20% increments every two years thereafter. This type of information can be found in the prospectus or black book. You should be able to obtain the prospectus from the listing broker or managing agent for the condo.

13. Why do I need an attorney? [TOP]
In New York County, brokers are prohibited from drafting contracts of sale. Attorneys are needed for real estate transactions. The best thing to do is hire an experienced real estate attorney who is willing to charge a flat fee.

14. Do I need a home inspector or engineer to look at the property before signing a contract? [TOP]
In routine co-op and condo purchases an engineer's inspection is not necessary because structural defects are the responsibility of the building. For townhouse purchases, hiring an engineer is recommended. The same goes for purchasing a brownstone apartment in a building where there are few units and a small working capital or reserve fund. Sometimes penthouse apartments or apartments with terraces in hi-rise buildings leak and in this case, we recommend an engineer.

15. Who pays the commission? [TOP]
It is customary for the seller to pay a brokerage commission and often the commission is divided between the listing/selling agent's firm and the buyer's/agent firm. In all cases, the seller must agree to a brokerage agreement that is transparent and provides that the firm/agent representing the seller and the firm/agent representing the buyer be paid separately.

16. Who represents me? [TOP]
In New York County, it is customary to have two agents. In general a buyer's agent represents the buyer and the listing broker represents the seller. Dual agency is when there is only one broker representing both parties and is the fiduciary of both.