CoOp Offer Subject to Financing?
Forgive me if this is the dumbest question ever but I’m a complete babe in the woods…In making an offer on a co-op apartment, I wanted to make the offer subject to securing financing. I’m preapproved and have the requisite downpayment so I don’t expect any difficulties but I don’t want to lose any deposit…
Forgive me if this is the dumbest question ever but I’m a complete babe in the woods…In making an offer on a co-op apartment, I wanted to make the offer subject to securing financing. I’m preapproved and have the requisite downpayment so I don’t expect any difficulties but I don’t want to lose any deposit should I not receive financing. The Prudential Elliman realtor insists that an offer contingent on financing is not standard and is not acceptable. Is she right?
Obviously whatever Denton is smoking is also affecting his penmanship. Credit to slopefarm for actually reading the question, an offer is not binding to either party and since it seems as though you don’t have a buyer’s broker, it’s up to the owner, especially a seller’s agent to vet the obvious: are you pre-qualified for a mortgage, (esp. for Co-op boards) your assets/liabilities, income, do you have the min 20% to put down etc.
She may even want you to put it in writing with the offer but a financing contingency is in your interest to have, however, it goes into the contract. Unless you can manipulate time and space, it is impossible to finance an apt without an accepted offer to begin with.
In my layman’s terms, I believe you make the offer for $X, and then you write the contract with the conditions of the purchase, which includes the contingencies on things like financing, inspection, etc. If you do a little Googling, you can find a survival guide to buying NYC Coops/Condos from a few years ago, which I thought was pretty helpful. Get the lawyer ASAP!
Denton,
You have a point. I think this is where I was confused too–I don’t want to waste anyone’s time. If in the end, the seller won’t agree to waiting for mortgage approval and all that stuff, wouldn’t it be better to hash all of this out in the beginning?
Apparently not.
sorry, I disagree with the majority. Your offer should contain any number of things, including mortgage contingency, board approval contingency, amount of down payment, etc. you don,t want to waste atty time if the seller really won,t provide a mortgage contingency. What do the think it is, 2007? lol…
And then tell the effin broker to stfu and present your offer to the buyer.
Thanks again everyone. I see where communication broke down now. Crowlfc, I’ll just put it this way. I won’t say what building I’m referring to, in order to avoid potentially upsetting the rather thin-skinned agent but more explanation and less pressure would have been a better tactic in speaking to me.
Actually after reading your comments again, The agent is right – An OFFER contingent on financing is a waste of time, just make sure it’s in the contract.
Right, blh. Either can back out before contract, but talk to your lawyer frist if you are thinking of doing so. Contract is binding and has specififed provisions governing default.
Everyone else — you are reading this as a seller’s rejection of a mortgage contingency. That is not what is happening here, at least not yet. Chill out and don’t confuse the OP. It goes in the contract, not the offer. The realtor is not involved.
I assume it is 80 Winthrop again. You can tell what’s her name at Prudential that she doesn’t know what she’s talking about. It would sheer lunacy to not have a financing contingency in a NYS sales contract. THIS IS WHERE YOUR LAWYER HAS TO EARN THEIR FEE.
Believe that’s correct – contingency in contract, not offer. NEVER take RE agent’s lawyer recommendation.
Good luck. Stressful process but prices and rates are low. Good will come from all of the heartache!