Tax Abatement

I recently moved into a new condo and we had to pay the full amount and then requested a rebate once the abatement was filed. So, yes, you'll likely pay the full amount for your first one or two months.

I about to get a condo and I was reviewing the offering plan it says that the tax without the 421-a tax abatement would be $967. It also outlines that it's not guaranteed that the sponsor will be approved for the abatement which means everyone would have to pay the normal taxes. Does this sound right?

Yes, brokers like to dangle the abatement in your face like a carrot, but the truth is, you only get it with a permanent Certificate of Occupancy, and you don't get that until the developer/sponsor has dotted i and crossed t's. Which in NY can take 6 monhts, 2 years or forever. Meanwhile you'll be probably moving in on the basis of a Temporary certificate - during which time you are paying full monthly cost, not deductible retroactively. BTW you are also not allowed to refinance or sell with a TcO.

is there any way to be sure the abatement will be granted?? I think $967 taxes on an apartment is very high.

From my experience, usually abatement takes about few months to 6months. FYI, you can absolutely sell your property with TcO

What is TcO?

Temp certificate of occupancy

Is the abatement really only awarded after the C of O is attained? and Once the Dept of Finance approves the abatement does one receive notice from the city and/or the condo management company?

While Zorki may or may not be right about TA kicking in only after permanent C of O is obtained - there is another thing: length of time that it takes for Department of Buildings to process a TA application. Builder files this application before he begins construction, then he builds for 12 months, but processing of the application takes more than these 12 months. That is why TA will kick in in 1,2...6 months after closing.

You absolutely right saying that brokers and builders make a lot of mispresentation on TA issues. Advice is simple: don't take anybody's word for anything. After the meeting of minds is reached and contract is sent to the buyer, the buyer should (through his broker or attorney) request the proof from the seller that TA application was actually filed. The seller is supposed to give the name and number to the expeditor who is handling the TA application of behalf of the seller. All questions should be addressed to this expeditor. The contract must also contain language that the seller represents that he did apply in good faith for TA. (Although the contract will never read that the seller guarantees that this TA will be granted).