To help you compare the different types of properties, below is a description of each property type, along with the advantages and disadvantages of each. With the help of your Spire agent, you will now be able to make an informed decision about the type of property that is right for you.

CO-OP (Co-operatives)

Co-operative ownership is a unique form of ownership found almost exclusively in Manhattan. In New York City, co-operative apartments make up approximately 75 percent of all apartments available for sale, condos make up about 25 percent, and condops make up only a small fraction.

Co-ops are actually owned by an apartment corporation. You, as purchaser, are a shareholder in the corporation and own stock in said corporation, which entitles you to a “proprietary lease.” Generally, the larger your apartment, the more shares of the corporation you own, though factors such as location in the building, view and light are also taken into account. Co-op shareholders contribute a monthly maintenance fee to cover the building expenses, including items such as heat, hot water, insurance, staff salaries, real estate taxes and the mortgage indebtedness of the building.

ADVANTAGES

• Prices are substantially lower than for condos
• Closing costs are much lower compared to condos
• A portion of your monthly maintenance fee is tax deductible
• All purchasers must be approved by the Board of Directors
• High quality of life and comfort
• High level of security

DISADVANTAGES

• Minimum cash down set by Board of Directors, which is usually 20-25 percent
• Purchasers are subject to a thorough review of financials and an interview for approval by the Board of Directors
• Subletting is usually more difficult than in condos, often requiring approval from the Board of Directors
• When selling, Board of Directors must approve the new buyer

CONDOMINIUM

The appeal of owning a condo is the 10% down-payment, providing maximum financing ability, and that there is typically no Board approval. Notably, condo rules set by Boards and managing companies are becoming stricter and more selective, often conducting thorough background checks that include financial inquiries as well as requisite reference letters. Additionally, the prices of condos remain substantially higher than for co-ops, ranging from 10%-30% more. Yet, a condo is a “real property,” like owning a house, where the buyer receives a deed of ownership, and owns what is “between the walls.” Each unit has a separate tax lot and each purchaser must pay individual property taxes on his/her unit - these taxes are deductible. The deed also grants a small percentage of the "common elements" of the building such as the halls, stairwells, basement, etc. Each owner pays a "common charge" to the condominium association to pay for items such as heat, hot water, repairs and employee salaries. This monthly fee is not tax deductible.

ADVANTAGES

• Financing is flexible - often up to 90 percent
• Typically, there is no Board interview
• Rejection is extremely rare
• Subletting is usually flexible
• Investors are permitted

DISADVANTAGES

• Prices are usually much higher than in a co-op
• Closing costs are higher than in a co-op

COND-OPS

Cond-ops are a hybrid between co-ops and condos. They are co-ops with condo rules. When buying a condop, you are buying shares of stock in a corporation (co-op) but there is typically no Board interview and rejections are as rare.

ADVANTAGES

• No Board approval necessary
• Rejection is extremely rare
• Subletting rules are usually extremely flexible
• Price lower than that of a condo
• Monthly maintenance fee is tax deductible

DISADVANTAGES

• Prices are usually higher than in a co-op
• Higher interest rate on financing than on a condo
• Generally higher maintenance fee

 

The typical time frame from when the co-op is found until closing is 3-5 months. Please find below the key steps of the co-op buying process so that you are well prepared to buy your dream home as easily as possible.

Before going out to see properties with your Spire agent, be sure to complete steps one and two.

1. Speak with a mortgage broker who services the NYC market to get pre-approval for a mortgage. A pre-approval letter specifies your borrowing power and price range. We recommend:
   Eric Stam
   The Manhattan Mortgage Company
   750 Lexington Avenue, 4th Floor
   New York, NY 10022
   
   

   Direct Phone:

   212.745.9003

   EFax:

   646.792.3807

   Cell Phone:

   917.846.2459

   
   EStam@ManhattanMortgage.com
2. Contact a real estate attorney familiar with the Manhattan market to represent you as well as a NYC CPA. We recommend:
   Adam K. Kurland, Esq.
   Attorney at Law
   FENSTER & KURLAND LLP
   337 North Main Street Suite 11
   New City, New York 10956
   (845) 638-4700 Phone
   (845) 638-4767 Fax
   akurland@fkllp.com
   

   Jerry Palumberi, CPA
   PALUMBERI & RAFIELI
   Seven Penn Plaza
   New York, NY 10001
   (212) 532-8261 Phone
   (212) 532-9707 Fax
   jerry@gprcpa.com
   
   
3. Once your Spire agent has found you the right property, convey your offer (verbally or in writing) to him/her, which must include the offering price, proposed closing date, and what you would like to remain in the apartment, if anything. Your agent will then submit an offer on your behalf by composing an official offer letter, which will be sent to the seller or the seller’s agent, along with your mortgage pre-approval letter and financial information.
4. The seller may accept your offer or negotiations may be necessary. If your offer is denied or countered, a prompt and aggressive counteroffer will help to ensure that it is accepted. Your Spire agent, along with a Spire Sales Manager, will carefully guide you through this very important step.
5. Once the seller accepts your offer, the seller’s attorney will prepare a contract of sale. Once your attorney approves the contract and reviews the due diligence, he/she will instruct you to sign the contract. Before signing however, you may choose to have your CPA review the financial condition of the building and deem it sound. Additionally, you and/or your attorney should review the last 12 months of the building’s Board minutes (meeting notes), which you will find at the managing agent’s office.
6. When you sign the contract, you will be required to present a deposit of 10% of the purchase price, typically payable to the seller’s attorney by personal check. The contract and the deposit will then be forwarded to the seller’s attorney and placed in an escrow account. It is important to note that until the contract is signed and delivered to the seller or seller’s attorney with the deposit check, the seller has the right to entertain and accept other offers.
7. If financing, you should now move forward with your loan application.
8. Your Spire agent will provide you with the Board requirements and application materials. You will need to provide and complete all of the required materials. In order to keep organized, we recommend using an accordion file, with labels on each section. The necessary materials typically include:
   • an application
   • a financial statement
   • all requisite support for your financial statement
   • two years of tax returns
   • bank statements
   • letters of personal and financial reference
   • a letter of employment verification
   • the contract of sale
   • bank documents (if financing) indicating that your loan is in place
9. Once you receive the mortgage commitment letter from the bank, add it to the application package.
10. When your package is finished, it will be reviewed by your agent as well as a Spire Manager, who will then forward it to the Building Management Agent for review. No application will be accepted by a Managing Agent unless they are complete. Upon determination that it is complete, in order, and that credit checks were acceptable, it will be forwarded to the Board of Directors.
11. If your application meets initial approval, you will be invited to be interviewed by the Board. Your Spire agent will prepare you for the interview. He/She will convey what to expect and coach you so as to maximize our chance for approval. After approval by the Board, the attorney will schedule a day and time convenient for all parties for the closing.
12. Your attorney will provide you with a list of checks to bring, which will typically include a second check for at least 10% of the purchasing price, and will let you know the date, time, and place of the closing.
13. The day before or the morning of the closing, your agent will take you to the apartment to make sure that everything agreed to in the contract is actually there and in working order.
14. Closing – Bring your checkbook, making sure to have a few extra checks. Your closing should run approximately 1-2 hours, as long as everyone is on-time and all paperwork is complete and in order.
15. Congratulations! You did it!

 

The typical time frame from when the condo is found until closing is 2-3 months. Please find below the key steps of the condo buying process so that you are well prepared to buy your dream home as easily as possible.

Before going out to see properties with your Spire agent, be sure to complete steps one and two.

1. Speak with a mortgage broker who services the NYC market to get pre-approval for a mortgage. A pre-approval letter specifies your borrowing power and price range. We recommend:
   Eric Stam
   The Manhattan Mortgage Company
   750 Lexington Avenue, 4th Floor
   New York, NY 10022
   
   

   Direct Phone:

   212.745.9003

   EFax:

   646.792.3807

   Cell Phone:

   917.846.2459

   
   EStam@ManhattanMortgage.com
2. Contact a real estate attorney familiar with the Manhattan market to represent you as well as a NYC CPA. We recommend:
   Adam K. Kurland, Esq.
   Attorney at Law
   FENSTER & KURLAND LLP
   337 North Main Street Suite 11
   New City, New York 10956
   (845) 638-4700 Phone
   (845) 638-4767 Fax
   akurland@fkllp.com
   

   Jerry Palumberi, CPA
   PALUMBERI & RAFIELI
   Seven Penn Plaza
   New York, NY 10001
   (212) 532-8261 Phone
   (212) 532-9707 Fax
   jerry@gprcpa.com
   
   
3. Once your Kurland agent has found you the right property, convey your offer (verbally or in writing) to him/her, which must include the offering price, proposed closing date, and what you would like to remain in the apartment, if anything. Your agent will then submit an offer on your behalf by composing an official offer letter, which will be sent to the seller or the seller’s agent, along with your mortgage pre-approval letter and financial information.
4. The seller may accept your offer or negotiations may be necessary. If your offer is denied or countered, a prompt and aggressive counteroffer will help to ensure that it is accepted. Your Kurland agent, along with a Kurland Sales Manager, will carefully guide you through this very important step.
5. Once the seller accepts your offer, the seller’s attorney will prepare a contract of sale. Once your attorney approves the contract and reviews the due diligence, he/she will instruct you to sign the contract. Before signing however, you may choose to have your CPA review the financial condition of the building and deem it sound. Additionally, you and/or your attorney should review the last 12 months of the building’s Board minutes (meeting notes), which you will find at the managing agent’s office.
6. When you sign the contract, you will be required to present a deposit of 10% of the purchase price, typically payable to the seller’s attorney by personal check. The contract and the deposit will then be forwarded to the seller’s attorney and placed in an escrow account. It is important to note that until the contract is signed and delivered to the seller or seller’s attorney with the deposit check, the seller has the right to entertain and accept other offers.
7. If financing, you should now move forward with your loan application.
8. Your Spire agent will provide you with the Board requirements and application materials. You will need to provide and complete all of the required materials. In order to keep organized, we recommend using an accordion file, with labels on each section. The necessary materials typically include:
   • an application
   • a financial statement
   • all requisite support for your financial statement
   • two years of tax returns
   • bank statements
   • letters of personal and financial reference
   • a letter of employment verification
   • the contract of sale
   • bank documents (if financing) indicating that your loan is in place
9. Once you receive the mortgage commitment letter from the bank, add it to the application package.
10. Once your package is complete, it will be reviewed by a Spire Manager and will then be forwarded to the managing agent for review. Upon determination that the package is complete, in order, and credit checks are acceptable, it will be forwarded to the Board of Directors.
11. Since, there is typically no Board interview for a condominium, your acceptance is highly likely. The Board will issue a waiver of the right of first refusal, which is the right to buy the apartment back at the price that the owner has negotiated with a prospective buyer. Once you are approved, the managing agent usually sets the date for the closing with the attorneys.
12. Your attorney will provide you with a list of checks to bring and will let you know the date, time, and place of the closing.
13. The day before or the morning of the closing, your agent will take you to the apartment to make sure that everything agreed to in the contract is actually there and in working order.
14. Closing – Bring your checkbook, making sure to have a few extra checks. Your closing should run approximately 1-2 hours, as long as everyone is on-time and all paperwork is complete and in order.
15. Congratulations! You did it!

1. Mortgage Pre-Approval:
   Typical Time frame: 1 - 2 days A mortgage professional, preferably one who specializes in Manhattan real estate, will calculate your financials so you can determine what you can afford. Though each building is different, typically purchasing a condominium will require at least 10% down, and a cooperative will require at least 20 % down.
2. Find an apartment:
   Typical Time frame: 1 - 6 months Though the search time is highly variable, the average person sees 5-20 apartments before choosing one. Individuals who conduct a bulk of their research online typically view only 4-5 properties before deciding.
3. Negotiations:
   Typical Time frame: 1 hour to 2 weeks Once you decide to make an offer on a property, some items in the apartment may be negotiable – from rugs and curtains to washer/dryers, light fixtures and appliances. Apartments are delivered " as is and swept clean".
4. Sign a Contract:
   Typical Time frame: 1 - 2 weeks It is customary for a real estate attorney to represent each buyer and seller. The seller’s attorney draws up the contract to be examined by the buyer’s attorney. Upon agreement, the buyers sign the contract and send a check for the down-payment. The contract is binding only after the contract is signed by both parties.
5. Apply for and get a mortgage:
   Typical time frame: 3 - 8 weeks Once the contract is executed, a commitment letter from the lender must confirm mortgage approval. The Board requires this proof of financing as part of the application package.
6. Complete a Co-op or Condo Board Package:
   Typical time frame: 1 - 4 weeks Cooperative apartment buildings require a complete Board package to be approved and an interview to be conducted before a closing can take place. Condominiums only require a complete Board package to be approved, an interview is not usually required. In order to review a potential purchaser, the Board of Directors for a Coop demand extensive information in a Board Package. Your agent will guide you through all of the requisite materials, ensuring that all materials needed are complete and in order. He/she will then forward the package to the managing agent of the building. The managing agent will inspect the package to ensure it is complete and forward it to the Board of Directors, who will then decide to interview (or reject) the applicant based on the "package."
7. If purchasing a Co-op: Board Interview
   Typical time frame: 30 minutes - 1 hour Co-op boards typically meet once a month and some Boards do not meet in August. Every Board is different, but generally, a Board meeting will be held in the evening on a weeknight. Although a board interview may be granted, this does not guarantee board approval.
8. Receive Approval from Board:
   Typical time frame: 1 day - 1 week after board interview The managing agent will generally alert the seller's broker when a potential buyer has passed the board.
9. Schedule a Closing:
   Typical time frame: 1 - 2 weeks after board approval Managing agents generally set the date for closings, and lawyers for sellers and buyers coordinate with the appropriate banks on available dates and times.
10. Closing:
    Typical time frame: 1 - 2 hours

Possible delays in the process may occur due to financing, Board approval, or closing date discrepancies. With the help of your Spire agent, such contingencies are likely to be avoided through apt preparation.

1. How does working with Spire help me?
   • Your agent will work along side his/her sales manager to save you time by customizing a list of properties tailored to your financials and specifications
   • Your agent will make sure that you are an informed buyer by educating you about the current market, your options, the process and more
   • Your agent will aggressively negotiate on your behalf, making sure you get the best deal
2. Should I use multiple brokers, from different real estate firms to make sure I don’t miss any properties?
   
   Spire agents have access to every property in NYC. Our listings department works around the clock, with access to the top databases, to make sure that our inventory is always comprehensive and current. Furthermore, Spire cooperates with numerous other agencies, sponsors and owners to guarantee that no property is overlooked. Working with only one agent not only doesn’t limit your options, but in fact makes the search process more efficient.
3. How can I have access to properties under exclusive deals with other real estate firms?
   
   An exclusive listing means that the seller of that property is represented exclusively by his or her selling broker. Your Kurland agents will be able to show you the property and represent you throughout the process. You won’t miss out on any properties or pay any extra fees.
4. Do I have to pay a broker fee?
   
   No, you don’t. Sales commissions are paid by the seller, not the buyer. When a property is co-brokered, the commission is shared between the buyer’s broker and the seller’s broker.

In order to approve the purchase, the Board of Directors of a co-op/condo will require information about your income and net worth. Although Boards have different requirements, they typically expect your carrying costs (mortgage, maintenance, common charges & real estate taxes) to be no more than 30% of your net income. It is also expected that after the purchase, you will have a given sum in liquid assets – the actual amount varies from Board to Board, ranging from one year of carrying costs to as much as 50% to 100% of the purchase price. How much of the purchase price can be financed also varies, depending on the building guidelines. The range is usually 0% to 80% for co-ops and up to 90% for condominiums.

To help you determine how much money you can invest in your dream home, below is a list of information that will be required by the Board and the bank.

1. Income
   • Cash:
   • Stocks/Bonds:
   • Other liquid assets:
   • Retirement Accts:
   • Real Estate owned:
   • Other Assets:
   • Total:
2. Assets
   • Cash:
   • Stocks/Bonds:
   • Other liquid assets:
   • Retirement Accts:
   • Real Estate owned:
   • Other Assets:
   • Total:
3. Liabilities
   • Mortgages:
   • Credit card balances:
   • Other debts:
   • Total:
4. Net worth
   (Assets minus Liabilities)
5. Down payment
6. Approximate monthly carrying cost
   (25% to 30% of income)
7. Mortgage amount pre-approved by bank