Dear All: I am a seller who have encountered some strange issues lately with the transaction of my unit here in midtown Manhattan. 1- the buyer's agent (a well known group from Douglas Elliman) submitted the condo board package 42 days after the contract is signed or 10 days before the expected closing date while knowing the turn around time is 20 business days. Is this normal? Because I was told... [more]
Dear All:
I am a seller who have encountered some strange issues lately with the transaction of my unit here in midtown Manhattan.
1- the buyer's agent (a well known group from Douglas Elliman) submitted the condo board package 42 days after the contract is signed or 10 days before the expected closing date while knowing the turn around time is 20 business days. Is this normal? Because I was told by them that it is.
2- this delay of the waiver have led the buyer's lender (Luxury Mortgage) to pull out this ridiculous guideline which require the building to have a umbrella insurance certificate valid for more than 30 days. Just my luck that the expiration of the existing certificate is on June 30th and the waiver was finally issued on June 13th. The bank refuse to be like every other bank out there with a letter of intent to renew from the management office and must see the actual certificate. I have contacted the insurance company and they said it is not possible to issue out a new certificate while the present one is still in effect.
My question is,
1-how long does it usually take to submit a board package to the management office after the contract is signed?
2- Have you ever heard of Luxury Mortgage and if so, what do you think about their policy that they have to see the certificate valid for more than 30 days in order to grant a closing. If that is the case, every building would have 1 month out of a year that transactions can not close, am I right?
Thanks!
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Response by Ottawanyc
over 12 years ago
Posts: 842
Member since: Aug 2011
There are time limits stipulated in contract. You need to refer to those and figure out who is obligated to do what and when. Obviously taking that long for a condo board package is not the norm, but sorry to say, sort of your fault for not making them move.
Any case, look at contract and call your condo president for expedited review.
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Response by alanhart
over 12 years ago
Posts: 12397
Member since: Feb 2007
Unless this is FSBO, *all* of these problems are completely the fault of the listing agent, whose role (secretarial as it is) is to push all the other parties along, slap them around, etc.
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Response by Ottawanyc
over 12 years ago
Posts: 842
Member since: Aug 2011
Yes, sorry I did not mean personally ops fault, but seller side.
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Response by sidelinesitter
over 12 years ago
Posts: 1596
Member since: Mar 2009
re: 1, I think the answer to your question is yes and yes. That is, it is serious BS but serious BS is normal when dealing with brokers
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Response by front_porch
over 12 years ago
Posts: 5318
Member since: Mar 2008
Leaving aside the discussion of the condo package timetable, I just went through this insurance mishegas on a transaction with Wells as the lender. (I don't know if it makes you feel better to know that it's not just you.)
Without knowing more details, I would say that the building insurance will get renewed in July, your lender will wait for all the certs to be in place, and you'll close late July. Of course this is not legal advice and your attorney can provide a better timetable.
ali r.
DG Neary Realty
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Response by hotcello
over 12 years ago
Posts: 2
Member since: Jun 2013
I did speak with wells and they told me as long as the management supply a letter stating they will renew then it should be good enough.... it might be different from person to person at the bank.
The contract was Signed on 4/11, a late July closing? for real?
From What wells told me that if a bank has to wait for a renewed certificate, it might trigger other expiration of other insurance matters even effecting the interest rate and other expiring documents from the borrower. It can trigger an avalanche of delays that it might never close..
If this is the case which 1 month out of a year buildings can not close due to insurance problems, shouldn't it be a common knowledge? I have spoke to 5 attorneys and many more brokers and non of them have ever hear of such thing. Should someone at the Times write an article about this?
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There are time limits stipulated in contract. You need to refer to those and figure out who is obligated to do what and when. Obviously taking that long for a condo board package is not the norm, but sorry to say, sort of your fault for not making them move.
Any case, look at contract and call your condo president for expedited review.
Unless this is FSBO, *all* of these problems are completely the fault of the listing agent, whose role (secretarial as it is) is to push all the other parties along, slap them around, etc.
Yes, sorry I did not mean personally ops fault, but seller side.
re: 1, I think the answer to your question is yes and yes. That is, it is serious BS but serious BS is normal when dealing with brokers
Leaving aside the discussion of the condo package timetable, I just went through this insurance mishegas on a transaction with Wells as the lender. (I don't know if it makes you feel better to know that it's not just you.)
Without knowing more details, I would say that the building insurance will get renewed in July, your lender will wait for all the certs to be in place, and you'll close late July. Of course this is not legal advice and your attorney can provide a better timetable.
ali r.
DG Neary Realty
I did speak with wells and they told me as long as the management supply a letter stating they will renew then it should be good enough.... it might be different from person to person at the bank.
The contract was Signed on 4/11, a late July closing? for real?
From What wells told me that if a bank has to wait for a renewed certificate, it might trigger other expiration of other insurance matters even effecting the interest rate and other expiring documents from the borrower. It can trigger an avalanche of delays that it might never close..
If this is the case which 1 month out of a year buildings can not close due to insurance problems, shouldn't it be a common knowledge? I have spoke to 5 attorneys and many more brokers and non of them have ever hear of such thing. Should someone at the Times write an article about this?