Backstory: Am buying a place, haven't done so in NYC before, let alone done a condo purchase, so I'm just not sure what's standard language. Our atty claims that these particular terms are common and not usually negotiable, but I am not convinced of that: -Resale of the unit: Sponsor is asking for right of first refusal - that we will give them first dibs on purchasing the unit. If normal, is... [more]
Backstory: Am buying a place, haven't done so in NYC before, let alone done a condo purchase, so I'm just not sure what's standard language.
Our atty claims that these particular terms are common and not usually negotiable, but I am not convinced of that:
-Resale of the unit: Sponsor is asking for right of first refusal - that we will give them first dibs on purchasing the unit. If normal, is there a standard term length for notifying them of the pending sale and receiving their response?
-Damage to the unit before closing: If there is significant damage ("fire or other casualty"), seller can resolve in a "reasonable amount of time" and it won't void our contract. Now, we have a walk away date so that we're not waiting indefinitely to close, but is the Damage clause legit?
-If we do walk away, within our rights, are we entitled to interest on the deposit?
[less]
Response by drdrd
about 17 years ago
Posts: 1905
Member since: Apr 2007
That resale of unit clause is interesting, isn't it? If they don't meet your price you could refuse them? I'd want THAT spelled out.
Anyone?
Ignored comment.
Unhide
Response by lo888
about 17 years ago
Posts: 566
Member since: Jul 2008
This is a condo? Odd - the right of first refusal is more restrictive than most coops.
Ignored comment.
Unhide
Response by ltd421
about 17 years ago
Posts: 11
Member since: May 2008
Both of those clauses sound really odd and restrictive. You can't strike them from the contract?
Ignored comment.
Unhide
Response by ctrlaltdel
about 17 years ago
Posts: 43
Member since: Aug 2008
From another board, I was told that the right of first refusal isn't so unusual b/c it's to protect the other owners in the building (ie if i sold to a family member at below-market rate, that would be used as a comp when other owners listed their units for sale)
Ignored comment.
Unhide
Response by bramstar
about 17 years ago
Posts: 1909
Member since: May 2008
What concerns me here is your apparent mistrust of your attorney's counsel. If you "aren't convinced" he is providing the correct information you should find another lawyer.
Ignored comment.
Unhide
Response by front_porch
about 17 years ago
Posts: 5316
Member since: Mar 2008
Right of first refusal is completely standard for NYC condo contracts. On the sales end, how long it will take depends on whether or not you're the first resale in the building -- if you're not, and there's already a procedure set up for it, somewhere between a week and a month.
ali r.
{downtown broker}
Ignored comment.
Unhide
Response by lo888
about 17 years ago
Posts: 566
Member since: Jul 2008
I saw an apartment with my broker this afternoon so I asked him as well and he told me that it was a common clause but he's never seen it executed. He said that the coop interview process whereby they can just refuse but not even buy the place from you is replaced by this clause in many condos. He said to bear in mind however that the "condo" is really the board so it is not likely that they will want your apartment and if they do, they will have to match the price you already agreed to anyway so it's no loss to you.
In terms of timing, he said it should be spelled out in your contract and that you should have a lawyer you can rely on to help you with the relevant clauses.
Ignored comment.
Unhide
Response by manhattanfox
about 17 years ago
Posts: 1275
Member since: Sep 2007
lo888 - 'he has never seen it "executed"'? or enforced?
'/%3e%3c/g%3e%3c/svg%3e)
That resale of unit clause is interesting, isn't it? If they don't meet your price you could refuse them? I'd want THAT spelled out.
Anyone?
This is a condo? Odd - the right of first refusal is more restrictive than most coops.
Both of those clauses sound really odd and restrictive. You can't strike them from the contract?
From another board, I was told that the right of first refusal isn't so unusual b/c it's to protect the other owners in the building (ie if i sold to a family member at below-market rate, that would be used as a comp when other owners listed their units for sale)
What concerns me here is your apparent mistrust of your attorney's counsel. If you "aren't convinced" he is providing the correct information you should find another lawyer.
Right of first refusal is completely standard for NYC condo contracts. On the sales end, how long it will take depends on whether or not you're the first resale in the building -- if you're not, and there's already a procedure set up for it, somewhere between a week and a month.
ali r.
{downtown broker}
I saw an apartment with my broker this afternoon so I asked him as well and he told me that it was a common clause but he's never seen it executed. He said that the coop interview process whereby they can just refuse but not even buy the place from you is replaced by this clause in many condos. He said to bear in mind however that the "condo" is really the board so it is not likely that they will want your apartment and if they do, they will have to match the price you already agreed to anyway so it's no loss to you.
In terms of timing, he said it should be spelled out in your contract and that you should have a lawyer you can rely on to help you with the relevant clauses.
lo888 - 'he has never seen it "executed"'? or enforced?