Manhattan Real Estate: FAQ About New Residential Developments

By
Real Estate Broker with The Corcoran Group

WHAT IS CONSIDERED NEW RESIDENTIAL DEVELOPMENT?
In New York, this is a residential offering that is completely new to the market, and must be approved by state and local governments. It includes both ground-up construction and the conversion of an existing structure, such as an office building or rental property.

WHAT IS A ‘SPONSOR'?
The legal entity that owns the new development being offered-considered "the seller."

WHAT IS AN ‘OFFERING PLAN'?
A comprehensive disclosure document provided by the Sponsor and approved by the Office of the Attorney General of the State of New York ("Attorney General") that describes the property's offering.

WHAT IS AN ‘OFFERING PLAN AMENDMENT'?
A modification to the Offering Plan that is filed with and accepted by the Attorney General. Amendments are issued over time as material changes are made to the Offering Plan.

WHAT IS A ‘PURCHASE AGREEMENT'?
A legal agreement between a Purchaser and Sponsor detailing the conditions of the sale of property, including price and terms.

HOW IS AN OFFER MADE?
Offers are made in writing and submitted to the development's onsite salesperson by the buyer's real estate agent.


HOW DOES AN ACCEPTED OFFER GO INTO CONTRACT?
Once an offer is accepted by the Sponsor, the onsite salesperson requests contact information for the purchaser. The Sponsor's attorney draws up the Purchase Agreement. The Purchase Agreement and Offering Plan are then sent to the purchaser's attorney for review. Once both parties have signed the Purchase Agreement and the Sponsor receives a down payment, the residence is considered "in contract."

HOW IS A DOWN PAYMENT MADE IN NEW DEVELOPMENT?
Typically, this is a percentage of the purchase price. Often, it is paid in the form of a certified check or wired into an escrow account set up by the Sponsor's attorney.

WHAT IS THE DIFFERENCE BETWEEN COMMON CHARGES AND MAINTENANCE FEES?
Common Charges are monthly dues in condominiums, the most common form of new development. Maintenance Fees pertain to cooperatives.

FOR CONDOMINIUM BUYERS, WHAT ITEMS ARE COVERED BY MONTHLY COMMON CHARGES?
Common Charges are the monthly charges allocated to each residence and paid to the condominium in order to cover the pro-rata share of the condominium operating expenses. This does not include the unit owner's real estate taxes which are billed separately to each owner. As the cost of operating the building changes over time, Common Charges are also subject to change.

Available listings in Manhattan New Developments

courtesy of:

Mitchell Hall, Associate Broker, The Corcoran Group

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    Comments 9 New Comment

    Rainmaker
    225,680
    Donna Paul
    Long Island Home Specialist, Search for Long Islan
    Keller Williams Realty Gold Coast

    Great information to share with buyers and new agents. Thanks for posting it.

    January 10, 2011 08:30 PM
    Rainmaker
    420,591
    Leslie Ebersole
    REALTOR - Chicagonulls Western Suburbs
    Baird&Warner Fox Valley

    If I were to ever have a Manhattan buyer, you would be first on my list for a referral. You know your market and are certainly a great communicator. Thanks.

    January 10, 2011 08:54 PM
    Rainmaker
    160,950
    Ryan Case
    877-828-0710
    SCA Real Estate

    Great post on informing buyers! So different than real estate out here on the west coast!

    January 10, 2011 09:52 PM
    Rainmaker
    272,324
    Eva Aliaga
    South Florida Real Estate - Boca Raton Real Estate
    Keller Williams Realty Boca Raton IdealFloridaLiving.com

    Hi Mitchell, great info on NYC real estate, by the way checked out your A GUIDE TO BUYING A COOPERATIVE OR CONDOMINIUM IN MANHATTAN from your site did not read it yet but you may want to update your contact info. Will keep it handy if I move back to NYC.

    January 11, 2011 01:48 AM
    Rainmaker
    499,268
    Mitchell J Hall
    Lic Associate RE Broker - Manhattan, NYC
    The Corcoran Group

    Vince, Thank you

    Donna-Paul Thank you and thanks for stopping by.

    Leslie, Thank you, I appreciate it very much. If I have a buyer for the Chicago suburbs you are the first on my referral list.

    Eva, Thanks for stopping by and for the heads up about the buyer's guide on my site. I changed it on the site but when you download it still comes up with my old Coldwell Banker contact info. I'm working on fixing it. I may have to re-write it since I don't remember how I was able to make the document downloadable.

    January 11, 2011 04:40 PM
    Rainmaker
    499,268

    Mitchell J Hall

    Lic Associate RE Broker - Manhattan, NYC
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