Hi all, I am combining 2 apartments on the UES and in the middle of renovations. Prior to closing on the 2nd apartment, Chase bank had asked me to put some money away in escrow (which was based on 1.5x a quote to take down the wall and combine the kitchen) and had told us they would return this to us when the wall between the apartments were taken down and the kitchens combined. We have since met... [more]
Hi all,
I am combining 2 apartments on the UES and in the middle of renovations. Prior to closing on the 2nd apartment, Chase bank had asked me to put some money away in escrow (which was based on 1.5x a quote to take down the wall and combine the kitchen) and had told us they would return this to us when the wall between the apartments were taken down and the kitchens combined. We have since met these requirements, but Chase refuses to give us our money back b/c our apartment is not in a livable condition! Well obviously its not b/c we are in the middle of renovations!! Anyways, now they are telling us that our apartment must be fully renovated before the escrow is returned even though none of this is stated in our signed contracts. The only ambiguous term in the contract is that work must be done in a "workmanlike" manner. I'm at a loss of words and not sure what more to do. I've asked to speak to this person's manager however she says that is not possible and that I should file a grievance which I have. What more can I do? To me, it seems like they are clearly breaching the contract and my only point of contact is with this one person who is completely unhelpful.
Does anyone have any experience with this specifically with Chase? What can I do here to get my escrow back?
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Response by NWT
almost 11 years ago
Posts: 6643
Member since: Sep 2008
Chase's position reading of the loan documents (and Chase should know: they wrote them) is probably that Chase can't tell whether the renovation was done in a "workmanlike manner" until the renovation is done.
Spare yourself the tsuris, finish the renovation, and watch your back next time.
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Response by dharma
almost 11 years ago
Posts: 66
Member since: Apr 2010
I combined 2 units in a coop a few years ago. 1 owned one unit previously, and purchased a second to combine with it. Wells Fargo, on giving us the loan for the combination, held a chunk of money ($50 or 75K I think) in escrow and said we had 90 days to get the city filing approving the combo and have the apartment in "livable" condition (lol. what that means I have no idea, given that families of 10 live in 1 bedroom apartments all over this city). The bank eventually sent an appraiser out (but they did this many months later) to look at the combo.
To meet the 90 day deadline, I had all architectural drawings (self certified) and work permits pulled for the combination before we closed on the second unit (taking financial risk loosing all that money in case we didn't closed for some reason). My architect also self certified. So the process of getting the city to give us paperwork approving the combo was much much faster.
I would see if your architect can self certify your plans and submit them to the city asap for the alteration paperwork (saying you're done). There's a chance that the city will inspect you (and that will be a problem if you are still renovating your kitchen or something), but from what I've heard it's small if you self certify… Then stall the bank appraiser coming to inspect you.
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Response by nyc_sport
almost 11 years ago
Posts: 809
Member since: Jan 2009
Did you file permits for this work? When I bought my apartment, it was combined without closing the permit. My bank held an escrow until I closed the permits and got a C of O (although I don't think you now need a new c of o for a combination).
Yes, all permits are filed as well as approval from the co-op board and building management. At closing, I was told that the apartments must be legally combined but now they are nit-picking on the "workmanlike manner" terminology and equating that to meaning "fully renovated".
Chase's position reading of the loan documents (and Chase should know: they wrote them) is probably that Chase can't tell whether the renovation was done in a "workmanlike manner" until the renovation is done.
Spare yourself the tsuris, finish the renovation, and watch your back next time.
I combined 2 units in a coop a few years ago. 1 owned one unit previously, and purchased a second to combine with it. Wells Fargo, on giving us the loan for the combination, held a chunk of money ($50 or 75K I think) in escrow and said we had 90 days to get the city filing approving the combo and have the apartment in "livable" condition (lol. what that means I have no idea, given that families of 10 live in 1 bedroom apartments all over this city). The bank eventually sent an appraiser out (but they did this many months later) to look at the combo.
To meet the 90 day deadline, I had all architectural drawings (self certified) and work permits pulled for the combination before we closed on the second unit (taking financial risk loosing all that money in case we didn't closed for some reason). My architect also self certified. So the process of getting the city to give us paperwork approving the combo was much much faster.
I would see if your architect can self certify your plans and submit them to the city asap for the alteration paperwork (saying you're done). There's a chance that the city will inspect you (and that will be a problem if you are still renovating your kitchen or something), but from what I've heard it's small if you self certify… Then stall the bank appraiser coming to inspect you.
Did you file permits for this work? When I bought my apartment, it was combined without closing the permit. My bank held an escrow until I closed the permits and got a C of O (although I don't think you now need a new c of o for a combination).
Generally, no new C of O required, though there are some caveats:
http://www.nyc.gov/html/dob/html/codes_and_reference_materials/tppn0397.shtml
Yes, all permits are filed as well as approval from the co-op board and building management. At closing, I was told that the apartments must be legally combined but now they are nit-picking on the "workmanlike manner" terminology and equating that to meaning "fully renovated".