TCO vs C of O
I am about to close on a condo that has obtained a TCO. Should I be worried about the possibility that the C of O will not go through? Can I get some kind of insurance?
I am about to close on a condo that has obtained a TCO. Should I be worried about the possibility that the C of O will not go through? Can I get some kind of insurance?
Actually the information above regarding the Spencer isnt exactly accurate. I was almost goign to buy there so I kept close tabs on what was happening. The development was not originally going to be built as market rate condos, it was going to be something that had to do with public services which is why they were able to build to a certain height. The developers then changed their minds and claim they were given the ok by the DOB to convert to market rate residential with the same building plans. Funnily enough the DOB now admits that one of the buildings in the development was in fact given the go ahead by an inspector when approached with the changes. However, they claim they did not give the ok on the other buildings in the development and refuse to give the C of O. Its a big mess now. I ended up purchasing in a new development in park slope about 2 years ago. We also closed on a TCO and received the formal CO about 6 months later.
Some good advice above. Given the nightmare at the Spencer, you can never be too careful about this. Perhaps consider hiring an engineer to participate in the walkthrough?
I would also use the DOB site query functionality get as much information about the outstanding requirements on the building in order to understand what additional work is necessary to get a CofO.
You are wise to be concerned, as the final CofO is necessary to resell or refinance. And it can take a LONG time for the city to finally sign off on the permanent C of O. All of the construction needs to be done to the approved plans, and to building codes.
There is a notorious building in Bed-Stuy called “The Spencer” that never got its final C of O, because the developers lied on the DOB applications to create structures that were too tall for the neighborhood zoning.
They got caught, and unfortunately, the owners who bought condos in these units have their hands tied now, until a number of issues get worked out. I don’t know if any resolution ever happened, actually; it’s been a total nightmare for those buyers…
Pay careful attention to the builder/developer behind the project you are considering, and maybe hire a 3rd party expert to investigate the building and builder’s reputation to see if any red flags are present.
Ultimately, you’re on your own; the State or City doesn’t seem to have any safeguards or protections in place for the buying victims of developers who screw up, intentionally or not.
See what the DOB has to say here:
http://www.nyc.gov/html/dob/html/certificates/co_factsheet.shtml