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Verification of Status of Condo Offering Plan

Started by lita
almost 18 years ago
Posts: 2
Member since: Feb 2008
Discussion about
How do I check the status of a condo offering plan (red herring) that was submitted to the AG office for approval almost 6 months ago? Can I go directly to a city office?
Response by TheStreets
almost 18 years ago
Posts: 123
Member since: Oct 2007

Call the AG's office. Maybe they can tell you over the phone what the status is. If you want to see the offering plan itself you have to schedule an appointment and you have to tell them in advance which offering plan you actualy want to see. You can't remove it from their offices. You can photocopy it. I think the offices are on 120 Broadway or somewhere near city hall. But if you call they are helpful.

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Response by TheStreets
almost 18 years ago
Posts: 123
Member since: Oct 2007

Also, be careful when putting down a deposit with a sales office for an offering plan "just to check it out". Usually it's about $200 + you sign a contract. If you are serious about buying the place they will take the unit off the market for a week or so in order for you and your lawyer to review the plan. If you just took the offering plan to have a look over it but later decide that you want to buy the place you can leave yourself in a much weaker negotiating position.

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Response by NYbylr
almost 18 years ago
Posts: 37
Member since: Jan 2008

TheStreets, may I ask why would that leave you in a much weaker negotiating position?

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Response by TheStreets
almost 18 years ago
Posts: 123
Member since: Oct 2007

If you're going to buy a preconstruction new dev you usually negotiate everything up front and once you have agreed upon the terms of the deal you move to looking at the offering plan. At that point you sign a contract to take the unit off the market for a week or so while you and your lawyer review the offering plan. If you are happy with the offering plan you move ahead with the deal as agreed.
However, if you signed the contract just to get your hands on the offering plan and then come back and try to negotiate the deal there are a few negatives:

You've certainly shown your cards and the selling broker knows you're serious about getting the deal done. You're obviously dilligent enough to read the offering plan liked what you saw in it - so forget trying to appear standoffish or using any other negotiating tactic like that in the hopes of getting a lower offer accepted.

It's almost inevitable that when you go back the selling broker will claim the deal was already agreed at the asking price when you signed out the offering plan. If you say "no, we didn't agree anything", they will probably counter with "all our asking prices are firm, there is no negotiating" or "when you signed out the offering plan you signed the contract for the unit at the asking price". Of the few offering plan contract forms I have seen there is a field to be filled in with the selling price of the unit. In one W60's development where I really wanted to read the offering plan before deciding on anything the guy said "well we can fill one of these forms out and when you return the offering plan you'll get your depsoit back". I challanged him about the price field and he said "ohh all this is just a formality - i can rip it up after you leave the office". Somehow I think that if I came back wanting to bid on the place that the contract would somehow resurface with the asking price on it. He couldn't explain why I needed to fill out any form if he was just going to rip it up.

If you can get your hands on an offering plan for free, with no contract, no signing of anything and without taking the unit off the market then that's great. If you have to do any of the above then I would be careful to make sure that no selling price is either expressed or implied in doing so.

The plans should just be available online anyhow. Always makes me wonder what they are trying to hide by making acess to them so difficult.

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