REBNY Form for Condos

Hi Steven, you should still be able to get away without providing a REBNY form (https://www.hauseit.com/sample-rebny-financial-statement/) if you're buying a condo all cash, just show proof of funds perhaps with your account numbers blacked out. There's no formal requirement, but if you're financing then the listing agent usually would appreciate seeing the form just as a sanity check even if you have a pre-approval letter.

This has already been discussed in depth here: http://streeteasy.com/talk/discussion/42205-excel-rebny-financial-statement

Good luck! Are you putting an offer in with a broker? Or unrepresented?

Hi Steve, there's already a thread for this topic: http://streeteasy.com/talk/discussion/42205-excel-rebny-financial-statement

Ahh sorry, our comments seem to have crossed paths. If you don't have a broker already, I hope the listing agents have been ethical enough to disclose the additional closing costs involved with new construction: https://www.hauseit.com/closing-costs-nyc/

I have friends with painful memories of buying new construction and their buyer's agent didn't ever bother to explain anything about the additional closing costs for sponsor units. It's pretty unbelievable. Hopefully you're working with someone. It's "free" to have one, though you can do one better by getting some of the buyer's broker commission back in the form of a home buyer rebate.

Good luck whatever you decide to do! Do your diligence! Get a good lawyer!

Steven,

I am myself a broker but before this thread turns into broker solicitation central, allow me to actually address your question.

The purpose of the REBNY financial form is protection. It protects the buyer from going into default/foreclosure and it protects the building from making sure their common charges are paid on time.

“We won't have much post-closing liquidity, so submitting REBNY to a condo gives them grounds for denial.”

Wouldn’t it be better you were denied as opposed to approved but unable to keep up with the payments? Instead of viewing this form as something negative which is an obstacle in your purchase, would it make sense to view it as a litmus test of your financial standing?

If the numbers do not add up, then it isn’t prudent to purchase. Perhaps, spend some more time accumulating more assets (or decreasing your liabilities) and restart your search in the future. If the numbers do add up, then share the REBNY form. What is there to fear?

For some reason, I do not think privacy is your concern but feel free to correct me if I’m wrong.

“We won't have much post-closing liquidity, so submitting REBNY to a condo gives them grounds for denial.”

Most condominiums still force buyers to go thru a process of submitting documents which look an awful lot like a Coop Board Package these days. However, almost one have approval authority over tranfers: what most have instead is a right of First Refusal, which means that the have the right to purchase the unit at the same price and terms which were in the contract of sale submitted in the package. They don't have the right (as Coops do) to simply reject the sale. As such, it is extremely rare that they exercise this right because it means they have to buy the unit and then either resell it or rent it. This is usually only exercised when the Board believes the transaction is being done substantially below market for some reason. Some Boards will sit on their Waiver of Right of First Refusal beyond the usual 30 days they have (see Offering plan) if they don't like a buyer's package to see if the deal will just "go away" but this certainly is outside of what their actual rights are.

Steven is a big boy and can figure out his finances;he doen't need a Rebyn form to help him out and thereby to prevent foreclosure. I wanted to buy into a condo building and was given the Rebny form to complete. I knew for a fact that this form was not required by the building to complete. Of course there is the condo application to complete after the contract is signed. And it does require personal financial information. But chances are you will not be turned down.

I find the Rebny form invasive and one should not have to disclose such personal information for the asking.
I am a real estate broker and a mortgage broker. The banking department has strict rules for mortgage brokers about protecting consumer's sensitive information especially since there is so much identity theft. The real estate board should get their act together.

Welcome Steven! While you don't typically need to fill out a full REBNY statement for a condo or co-op sponsor sale, the reality is that the seller and listing agent will need to know SOMETHING about your finances before agreeing to do a deal with you.

Typically the listing agent will ask for a 'submit offer' form, which is a lighter version of the REBNY statement. All you need to do is provide an approximation of your income, assets and liabilities. You don't have to itemize all of your financial statements like on the REBNY form.

You likely won't be able to do a deal if you don't provide this information to the listing agent. After all, why would a seller agree to go off market and proceed with you if they don't know anything about your finances apart from the fact that you are pre-approved? Most other bidders will have provided a financial summary to the seller, which gives the seller more confidence in dealing with these buyers!

Also, forgot to add: If you are concerned about privacy, I would be very careful in agreeing to buy a co-op sponsor unit. Many buildings will require you fill out an abbreviate board package which will force you to reveal lots of private financial information. Even though they won't/can't reject you, the building will still require you to complete and submit this app before they will permit you to close on the apartment!

@uptownben - The reason is that for unsold shares many Offering Plans don't actually say "No Board Approval" but instead say "The consent of the Managing Agent only, which shall not be unreasonably withheld".

@steven_D this is the offer form @uptownben is referring to: https://www.hauseit.com/wp-content/uploads/2017/06/REBNY-Submit-Offer-Form-PDF-NYC.pdf

In my experience it's mostly used for condos and sponsor sales.

Good luck!