Buying A Co-op?

If so, listed below are the major steps in the process provided courtesy of Christopher Gulotta (cgulotta@gulottalaw.com)

1. Buyer reviews credit report

2. Buyer obtains pre-approval from a lender

3. Home search

4. Negotiation / accepted offer

5. Broker(s) contact attorneys with information for contract (the “term sheet”) and arrange for delivery of building documents to buyer’s attorney for due diligence review (offering plan, amendments and financial statements)

6. Buyer’s attorney reviews building documents; seller’s attorney drafts contract; attorneys finalize contract; buyer signs and places contract deposit (typically 10%) in escrow with seller’s attorney; seller signs

7. Buyer provides fully executed contract to lender (lender orders appraisal), and starts compiling information for board package and lender.  Buyer’s attorney or bank attorney orders lien search

8. Lender provides loan commitment, bank’s attorney ensures Recognition Agreements executed and UCC-1 filed.  Buyer provides board package to broker

9. Broker collects required co-op fees from buyer and seller, and review, clarifies, copies, collates and delivers board package to managing agent

10. Managing agent reviews board package for completeness, orders credit report and background investigation (if required), and delivers package to board of directors

11. Board reviews package and may request additional information

12. Board interviews buyer

13. Once board approval obtained, attorneys schedule closing date with all parties; seller or seller’s attorney gets payoff letter from seller’s lender, and arranges for original collateral to be brought to closing

14. Broker takes buyer on pre-close inspection, then CLOSE!

15. Buyer collects all documents from attorney and lender, or receives closing package a week or two later

Take care -

Daniel