SRO status

An attorney will probably woffle that you need to consult an architect or wait for the title report, searches etc …. All of this does not help you when it can take them 2-3 days just to return your call, especially if you have not yet even retained them! And all you are doing is trying to work out if you want to buy it! The bottom line is; if HPD has it as 7 class A units with no class B units. Then the chances are it is a legal 7 unit building. Which means that it is probably rent stabilized. It Certainly will not qualify for conventional financing and even if it is delivered vacant, be careful how you convert it to something else and file it with DHCR. (To destabilize it) IE: If you are buying a 4 sty with 2 apartments per floor on the upper 3 floors and 1 apartment on the garden floor; you cannot just downsize it by combining the lower two floors, calling it a 5 family so it is no longer rent stabilized! The upper 4 apartments will still be rent stabilized. To get it out of rent stabilization you have to completely rehab the building so that no original layout exists any more. And get a whole new C of O. For class A rent stabilized buildings if the building is vacant, you do not need a Certificate of non harassment but be sure that all prior tenants have given up possession. I was once offered a building that had had some fire damage, the tenants that were in “temporary housing” had rights to the apartments under rent stabilization. If you are new to this look for an old school Broker, that knows all this stuff. It will be someone that has been in the business for at least 15 years or so and is difficult to find amongst all the marketing geniuses that the Brokerage business is full of these days.

resident2

in Home Buying 10 years and 7 months ago

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leftbankdesign | 10 years and 7 months ago

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Hey Forum – We are looking at a brownstone for sale. The broker says it has SRO status, with no CNOH, but when I check on the Buildings Department website, it says it is NOT SRO restricted. Does that mean it’s free and clear? Advice greatly appreciated.

Augustiner | 10 years and 7 months ago

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Go to the HPD Website and lookup your address. If you have ‘b’ units the house is an SRO. If it’s an SRO I hope you have patience and money.

leftbankdesign | 10 years and 7 months ago

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Thanks August! No B units, 7 A units. No Co of O. Is it clear? Much appreciated.

DouglasAlan | 10 years and 7 months ago

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You should probably get legal advice from an actual lawyer. You’ll need one to buy the property, and questions like this should be covered in what is usually a flat fee of around $1000 to $1250\. Even if you have to pay someone for an hour to answer one question, are you really willing to risk getting advice from someone like me, whose only legal qualification is I signed up for this website?

slopefarm | 10 years and 7 months ago

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Yes, what DA said. I would add that $1000-1250 sounds low to me for a decent RE attorney for a house purchase, as opposed to condo. However, since you are not in contract and do not even have an accepted offer, I would do it this way: line up your attorney for the eventual purchase, for whatever house you ultimately buy. Then run this question by the lawyer. For an experienced RE attorney, this may be a question with a very quick answer. It may not cost you any extra to get an answer, whether or not you end up bidding on this house.

Augustiner | 10 years and 7 months ago

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Hey Leftbank, HPD showing no B units is good news. You´re almost safe. But as the other posters indicated I wouldn´t just go by what someone says on a Forum when spending so much money 🙂 Your closing lawyer is able to give you certainty at no extra cost if you ask this specific question. You´ll need one anyway. An Architect/Expediter might also give be able to give you this info if you have one lined up already. I bought an SRO a couple of years ago without even knowing it or having heard the word SRO in my life. The title insurance and closing lawyer failed to recognize it or notify me of the consequences. It was a tough ride and took 3 years from purchase to move in date.