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October 28, 2008
Purchase Contract Questions (help!)
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.
Yes, I am working with an attorney, but I have been given loads of good advice from you folks and I would feel better knowing that these particular terms (that the atty says aren't usually negotiable) are actually common and not things I should be stressing about:
-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?
Thanks, Brownstoners!
Comments
Right of first refusal is common. It protects the building from you selling your unit far below market value to protect the other owners. If you were to sell your unit let's say to a relative for half of its worth than it would be recorded as a closed comparable sale in the building. When someone else would go to sell, your lower comparable sale would be used and may adversely affect that owner.
Very common and rarely used. Your attorney is correct.
Now let's talk about that mortgage!! I have references :)
-Adam
Posted by: Adam Dahill at October 29, 2008 9:48 AM
- And I'm sorry but you do not get interest from your deposit.
Posted by: Adam Dahill at October 29, 2008 10:11 AM
make sure there is contangency clause in your K.
It protects you from purchase if you won't get financing.
Posted by: karo25 at October 29, 2008 12:26 PM
I would disagree with Adam. The right of first refusal is very common and very often used in a sale of a condo unit!
I suggest you go online and look for real estate forms and find residential real estate contract. there are planty out there and the only thing the attorney does is fill in the gaps!
No brainer...make sure you won't pay more than 2K for his services, that is a standard fee that most would take.
Posted by: karo25 at October 29, 2008 12:32 PM
karo25- You would disagree?????? You just said the same exact thing I did????? What are you talking about?????
And you should be able to get a good RE lawyer for $1,500
Posted by: Adam Dahill at October 29, 2008 12:49 PM
we have a lawyer, i've just never seen these particular clauses in a purchase agreement before, having never bought a condo in nyc!
and thanks, adam, but we've got the financials covered...
Posted by: ctrlaltdel at October 29, 2008 1:39 PM
"Very common and rarely used. Your attorney is correct." is actually not the same as "The right of first refusal is very common and very often used in a sale of a condo unit!"
Keywords being "rarely" and "very often."
Posted by: serpentor at October 29, 2008 2:24 PM
The right of first refusal is very common on condos and It's rarely executed. Is that clearer?
Posted by: Adam Dahill at October 29, 2008 2:48 PM
ctrl alt,
Curious. Did you negotiate transfer taxes and sponsors attorney fee? Also wondering whether he came down in price. Also what area are you in?
Posted by: k91 at October 29, 2008 5:24 PM
k91, there was of course some negotiation on many of the terms of the purchase, financially and re: contract terms. everything is negotiable!
anyone have any input on the second issue re: serious damage pre-closing? i suppose expressly linking our walk away date to that clause would be the same/similar enough to getting rid of it completely.
Posted by: ctrlaltdel at October 29, 2008 6:15 PM
I know everything is negotiable I meant negotiable as in did you negotiate that the sponsor pay the TT's and his OWN damn Esq fee. But thanks for the cryptic response. I guess I should take it as you don't know?
I ask, because these are the terms of the K that you should concern yourself with not casualty and loss and first refusal clauses. In fact, you have wasted the energy for which you should have spent hounding your esq. That is what you are paying him for. It my view, as an attorney, that if you have to seek out a mortgage broker (although Adam is knowledgable at what he does - mortgages) and some jackas named kero who says a state regulated industry (new condominum development) possibly worth MILLIONS to you, is a no brainer and that you should consult a STORE BOUGHT contract for advice, then you sir chose the WRONG lawyer. Period. Your lawyer should have spent the time clearly explaining the gist of each and every clause prior to you signing, and then, if you still have questions, should spend the time necessary to answer them.
Instead all that you have done, although unwittingly andbthe courts may look favorably upon that, is
to goad Adam (and possibly his mortgage license), and even kero, into an unauthorized practice of law claim.
My advice to you, is to stay very far away from boards like this if you have questions about your
purchase K. Instead HOUND your esq. Get your answers and make sure they (his answers) make sense. If they don't, then seek out the AG's office or another attorney.
I am obviously fired up, but as I should be. Your probably unresponsive esq only provides an addtonal stain on an already perceivably dirty profession. And more generally, it's the same ad hoc attitudes and advice by RE professionals that got a lot of people and now the economy and your soon to be NYC RE in what was otherwise an avoidable mess.
Otherwise good luck brother.
Posted by: k91 at October 29, 2008 8:02 PM
K91 - huh? Your post is a joke, right? [Here I go playing with trolls again - hey has anyone noticed we don't have as much trolling activity as before?]
Posted by: Putnamdenizen at October 30, 2008 9:12 AM
what a weird response. i didn't answer your question about taxes/atty fees because a) it's none of your business, b) i don't care to give too many details about the transaction, as i know that brokers/sellers/etc might be reading this board and c) it's not relevant to my questions.
My atty has not been unresponsive at all, but has answered my questions. Because this is all new to me, and involves a sh*tton of money, I'm looking for a second opinion as too whether these are common clauses, without having to hire another attorney. Anyone with buying/selling experience, including other homeowners, lawyers, brokers, etc are free to answer that if they choose to.
Get it?
Posted by: ctrlaltdel at October 30, 2008 2:55 PM
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