1) The board of this building discriminates against foreign buyers. A foreign buyer, even if he or she is buying all cash, wont receive the waiver of first refusal (i.e. wont be allowed to buy) unless s/he puts two years of advanced maintenance in an escrow account. This escrow deposit has no defined path to redemption.That is the decision on when or if to return the deposits is left to the... [more]
1) The board of this building discriminates against foreign buyers. A foreign buyer, even if he or she is buying all cash, wont receive the waiver of first refusal (i.e. wont be allowed to buy) unless s/he puts two years of advanced maintenance in an escrow account. This escrow deposit has no defined path to redemption.That is the decision on when or if to return the deposits is left to the arbitrary discretion of the board. So a foreign buyer may not see her deposit back until she resells the apartment.
2) I hope that nobody in the board is getting a personal benefit from the money 'extorted' into escrow!
3) Also the Management company, Bellmarc is a disaster, the board packages sit there untouched for weeks and it takes a lot of emails and calls, to get any action (nobody, except the receptionist ever picks up the phone). Recently we had to get involved two times the top managemer of the firm in a single transaction (We had received an escrow document that did not have any provision to return the two years 'extortion' if the foreign buyer was to sell the unit)
4) To end on a positive note: the doormen and personnel of the building are very nice!
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Response by alpine292
almost 17 years ago
Posts: 2771
Member since: Jun 2008
Most co-op boards do not want foriegn buyers. Your best option is to go the condo route.
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Response by Vivaldi
almost 17 years ago
Posts: 27
Member since: May 2007
Infact this is the problem: City Spire IS A CONDO! - NB) I misspelled the name of the building it is CITY SPIRE
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Response by aifamm
almost 17 years ago
Posts: 483
Member since: Sep 2007
It sounds like this building has been burned by a delinquent foreign buyer then.
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Response by front_porch
almost 17 years ago
Posts: 5320
Member since: Mar 2008
How is escrow "extortion?" That money sits in an attorney's account -- it's not like the board is taking your money and going to Cabo.
If a unit owner in a condo does not pay their common charges, the burden falls on each and every neighbor. It's a pain when YOU have to get some of YOUR money frozen, but you will appreciate the board's strictness when your neighbors don't default.
PS. I live on 56th Street as well; I am waving at you.
ali r.
{downtown broker}
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Response by hsw9001
almost 17 years ago
Posts: 278
Member since: Apr 2007
OTOH, if you feel like playing chicken, you can try to call their bluff by pushing them to exercise right of first refusal. Condo boards may not have the money or inclination to buy the condo. Do understand that if you do win via this tactic, they may not exactly like you.
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Response by Vivaldi
almost 17 years ago
Posts: 27
Member since: May 2007
dear front porch
1) why dont they impose the same 'strictness to residents? they offten are more debt beaten than the forein cash buyers
2)It is Extortion because they squeeze out the money from the foreign buyer or else no waiver -and there is no explenation when and how you qualify to get the money back
2) Asking, ONLY TO FOREIGNERS, to put 24 months maintenance in escrow is basicly a way to discourage foreigners from investing in the building when 6 months would give ample protection and would give enough time to start foreclosure proceedings -
3) maybe the money in escrow is a favor to a friend of a board member, i dont think that there is a policy in place to avoid this possible scandal
DEAR HSW9001
in theory you are right, but infacy you would have to go into a long legal battle to force the board excercise the right of first refusal. A battle the board pays with other people's money, while you have to pay it with your own money...
Most co-op boards do not want foriegn buyers. Your best option is to go the condo route.
Infact this is the problem: City Spire IS A CONDO! - NB) I misspelled the name of the building it is CITY SPIRE
It sounds like this building has been burned by a delinquent foreign buyer then.
How is escrow "extortion?" That money sits in an attorney's account -- it's not like the board is taking your money and going to Cabo.
If a unit owner in a condo does not pay their common charges, the burden falls on each and every neighbor. It's a pain when YOU have to get some of YOUR money frozen, but you will appreciate the board's strictness when your neighbors don't default.
PS. I live on 56th Street as well; I am waving at you.
ali r.
{downtown broker}
OTOH, if you feel like playing chicken, you can try to call their bluff by pushing them to exercise right of first refusal. Condo boards may not have the money or inclination to buy the condo. Do understand that if you do win via this tactic, they may not exactly like you.
dear front porch
1) why dont they impose the same 'strictness to residents? they offten are more debt beaten than the forein cash buyers
2)It is Extortion because they squeeze out the money from the foreign buyer or else no waiver -and there is no explenation when and how you qualify to get the money back
2) Asking, ONLY TO FOREIGNERS, to put 24 months maintenance in escrow is basicly a way to discourage foreigners from investing in the building when 6 months would give ample protection and would give enough time to start foreclosure proceedings -
3) maybe the money in escrow is a favor to a friend of a board member, i dont think that there is a policy in place to avoid this possible scandal
DEAR HSW9001
in theory you are right, but infacy you would have to go into a long legal battle to force the board excercise the right of first refusal. A battle the board pays with other people's money, while you have to pay it with your own money...