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December 1, 2007
Closing nightmares: Buying in NYC is IMPOSSIBLE!!!
Ok so we're in our second deal trying to buy our first condo in NYC. The first deal was a disaster that is easier left alone for now (seller couldn't get a C of O).
We're buying a unit in building that's been gut renovated. The seller says they have filed the declaration of condominium. We don't know what this means. They say they are waiting for the tax lots to be assigned to the individual units.
We check the ACRIS system but didn't see anything about the declaration of condominium being filed or recorded with the Register's Office. [We don't need a C of O per the bank's attorney, our attorney and seller's attorney b/c the building was built prior to 1938 so this isn't the issue]
The projected date for the seller being able to close has already been pushed back 3 - 4 times.
When we ask why we're told we just have to wait for the city now and who knows how long that will take.
Why is this process such a mystery? Why can't buyers get more information about this process? What is required? What is outstanding? How long it will take?
Is there some special NYC buyer's guide that walks your through this BS?
Meanwhile my sister in another city bought a new home and it only took her a month to close, NO BS!!!
Comments
Love the multiple exclamation points.
Relax. This is new york city. No there is not users guide to new york city. That's why we love it here. If you can't take the heat...
Posted by: guest at December 1, 2007 9:57 PM
That sounds horrendous. It's NOT normal and should not be normal. It's total BS. Sorry. Talk to your lawyer.
Posted by: guest at December 1, 2007 10:37 PM
You're absolutley right--buying in NYC is impossible. Well, almost. It's horrific. I have no advice on your specifics, but they'll all be handled if you get a great real estate lawyer. Good luck...
Posted by: Rehab at December 2, 2007 2:01 AM
OP here. 9:57, I asked about a NYC Buyer's guide, not a "users guide to new york city." There are many great guides to NYC on a many aspects of our great city because smart people who have experienced challenges here have put them together to make it easier for the next person.
One of the reasons why I am a New Yorker, thus remain in the kitchen, is because New Yorkers go out of their way to help one another. In fact Brownstoner is a place for people to help one another. You're turning it into a place where people treat each other in a sarcastic and mean way, which isn't really what we want our city [or this site] to be about. If anyone should be considering getting out of the kitchen, it's you.
In terms of the topic, I think the path that needs to be made more transparent in cases like this is the path that the developer/sponsor needs to take to get the property prepared for closing. Since developers do this everyday, there must be a way to understand the steps better even though I'm sure they are complex and varied. I'd imagine some entrepreneurial, genius RE lawyer or even a developer could really capitalize on writing something if it's not already there.
Also, in short, I think our lawyer is lame, but it feels risky to try to find another mid - deal so if anyone out in Brownstoner world can shed some light on this that would help a lot. Thanks.
Posted by: guest at December 2, 2007 1:57 PM
You're comparing apples to oranges with regards to your sister... she bought a house... you're buying a condo which hasn't been fully converted... be VERY careful about accepting the sellers c/o, etc.
You could have many problems if you want to refinance or sell in the near future.
You have an attorney for a reason. Don't be pushed into closing if you're not comfortable with the legalities. Make sure your attorney is on the ball, if you're not sure, ask another attorney for a second opinion.
Howard (Agent)
Posted by: howrealnyc at December 2, 2007 8:54 PM
Someone once dismissed me as "that guy from California again" (I moved from CA to here) when I was comparing the process here to the that in Ca/Wa/Or. Well, it's true. The system here, if you could call it that, is medieval. Nothing is taken on face value, nothing happens unless you get a lawyer to sign on and even then maybe not, nobody trusts anybody, they use *hand calculators* at closing time...it goes on and on. Everyone has a horror story.
But there's nothing you (or I) can do about it...so sit back, relax, don't trust anyone and prepare to be screwed...
Posted by: cmu at December 2, 2007 9:05 PM
I am having the same problem on a condo - they have cancelled 5 closings now. I tried to get out but they are telling me I must allow them to have one year since hte accepted offer.
Posted by: guest at December 3, 2007 10:26 AM
OP,
You are right about NYC and real estate. I won't bore you with my story as it did not involve a coop and thus is not useful here.
I assume you have done this, but just in case, read your contract slowly and carefully. Focus on any provision that deals with time to closing and seller's and buyer's defaults, as well as any representation that seller has made. Make sure you understand these terms. You need to know where your leverage and power are and how much or little you have, as well as what the implications are of pursuing your various options. Is the seller in breach yet or still within its rights? If you back out are you in default? If the seller is in default now, is it of a kind that the contract provides that you only get your down payment back? Also think about how much the delays have cost you? Can you declare time of the essence at this point and do you want to? Your lawyer should of course be able to tell you all this, but you aren't sure of your lawyer and if you can make sense of some of these issues, you will feel more in the driver's seat both with your attorney and with the seller.
If you are at all thinking of escalating this, whether it is to a testier exchange of letters and threats or outright litigation, think about changing lawyers. You will want to trust the advice you are getting going forward. Hit the archives here (under the "lawyers" tab) for past discussions of the pros and cons of changing lawyers midstream. Sometimes attorneys are lame, sometimes people expect too much from them. Look at the past discussions on the topic and see what resonates with your situation.
Good luck and keep us posted.
Posted by: slopefarm at December 3, 2007 12:20 PM
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