Closing costs for storage unit
Started by mira2
over 7 years ago
Posts: 0
Member since: Apr 2016
Discussion about
I purchased my new development condo 7 months ago, and now I am trying to purchase a storage unit in my building. However, i am told that I'll have to pay all the closing costs, + attorney fees of the sponsor - which seems ridiculous. They are asking for $2k attorney fees for a 10k unit. They also have more storage units available than apartments still on the market, so I am wondering if this is negotiable. I also have no idea what i should be budgeting for closing costs on a 10k storage unit. Can someone please give me an idea? And if you think its worth asking them to subsume all the closing costs into the price of the unit? any advice is appreciated.
Complete baloney. You shouldn’t have to pay a dime. It’s a standard storage lease agreement usually and the attorneys have to do zero work beyond a form template. I wouldn’t pay a cent.
Question is do you want the unit or not. They will charge whatever they want. Perhaps your broker will have some ideas. Hindsight but better to buy the unit with the apartmet as a package.
Well closing costs on a new development NYC condo are supposed to be approx 5%. So if you go by that your closing costs should not be more than $500. But I presume this is a cash transaction; that should lower it more. Do not pay $2k attorneys fees that is extortion. They will most likely end up giving new condo buyers remaining units for free to get the last few condo units sold.
CCL3,
I think a lot of developers would prefer to use the "storage units for free" to close deals approach. You can't use a percentage of price for everything - a lot of those closing costs (transfer tax, mortgage stamps) are based on a percentage, but some (specifically attorneys fees) are not.
Unless there is a By-law stating that there can not be more than 1 storage unit per unit owner it may not matter that there are more storage units than units available.