seller's agreement to pay coop maint costs
Started by nataliaros
almost 15 years ago
Posts: 3
Member since: Feb 2011
Discussion about
I'm negotiating to buy a coop (not a sponsor unit), and we are considering a deal with a seller's concession to pay 6 months of maintenance. I cannot get a straight answer from anyone how these arrangments typically work when the seller is not the sponsor. Does the seller pre-pay the coop at closing? Put it in escrow (and if so, who is in charge of that)? Thanks. (Newbie here... bear with me as I learn!)
My strong advice to you would be for the seller to pre-pay the maintenance. They should bring a bank check to the closing and hand it directly to the managing agent (who will be present). Better yet, if they can pay it ahead of the closing so that the check clears and is reflected on the apartment's account, great. I personally would not want to deal with an escrow after the closing. It's unnecessarily complex for something that can be handled simply.
So why doesn't the seller just reduce the sales price by that amount? Less taxes too.
Hmmmm….
At closing you will receive a credit equal to 6 months maintenance. That is how it works.
Maybe they can't get a lower price approved for the board, would make a "bad" comp