Skip to main content
Fulltext search
FILTER RESULTS BY:
RECOMMENDED IN RENT
Moving to NYC after college? Here's how to find a rental apartment
RECOMMENDED IN BUY
How buying real estate in NYC is unlike anywhere else
RECOMMENDED IN SELL
A guide to using a no-fee renovation loan from a NYC real estate firm
RECOMMENDED IN IMPROVE
How to make your NYC renovation more pet-friendly
BEST REAL ESTATE WEBSITE!
National Association of Real Estate Editors
BEST REAL ESTATE WEBSITE! National Association of Real Estate Editors
Brick Underground
Social Links
follow:
  • Facebook
  • Twitter
  • Instagram
  • Flipboard
  • search
Brick Underground
☰ Brick Underground
Brick Underground
Brick Underground
☰
Brick Underground
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
    A rendering of the roofdeck at 55 Broad Street.
    Rent
    Housing lottery launches for 143 apartments in the Financial District
    Aerial panoramic view of Red Hook, Staten Island, Brooklyn, and Verrazano-Narrows Bridge
    Sales Market
    24 NYC neighborhoods where median prices more than doubled in the past decade
    431 West 54th Street is a co-op building that allows subletting.
    Investing
    Want to buy an investment apartment to rent out? Here's what you need to know
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
    Young woman using laptop at new apartment, with moving boxes around.
    Roommates + Landlords
    Didn't get your security deposit returned in NYC? A new chatbot can help
    A rendering of the six-story building in Park Slope.
    Affordable Housing
    Housing lottery launches for 45 rent-stabilized units in Park Slope
    Laura and her dog Jack
    Rent
    Why I moved to NYC from Brazil: I relocated for work and reunited with friends I made 15 years ago
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
    Aerial view of downtown Brooklyn
    Sell
    Median sales price in Brooklyn climbs to $995,000 in the second quarter
    Downtown New York City
    Sell
    Manhattan deals rose to highest level in nearly two years, defying national trends
    new condo building and older co-op buildings in Prospect Heights, Brooklyn
    Sell
    Brooklyn median price nears $1 million but the spring market is a question mark
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    Distressed woman sitting in her apartment
    Troubleshooting
    Ask Altagracia: My live-in partner is abusive. How can I get out of my lease?
    Sponsored By Outerbridge Law P.C.
    NYC apartment buildings with fire escapes
    Neighborhood Intel
    Can you sit on a fire escape in NYC? 5 things to know
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
    mini splits apartments new york city
    Products + Services
    Yes, you can install central AC in your co-op or condo unit. Here's how
    image
    Products + Services
    Take back your deck! How to win the war with mosquitoes and enjoy outdoor living again
    NYC apartment building with AC units
    Products + Services
    My neighbor's dripping AC is driving me crazy. What can I do?
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
    Burned and Boarded Up Windows
    When should your board hire a public adjuster?
    Manhattan GM
    What should we consider when renewing insurance for our building?
    Facade of NYC buildings
    How much is insurance on a NYC co-op or condo building?
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    Distressed woman sitting in her apartment
    Troubleshooting
    Ask Altagracia: My live-in partner is abusive. How can I get out of my lease?
    Sponsored By Outerbridge Law P.C.
    Building facades in New York in winter
    Roommates + Landlords
    Ask Altagracia: I withheld rent due to inadequate heat and I'm being hassled to pay it back. What should I do?
    Sponsored By Outerbridge Law P.C.
  • Brick Report
  • About Us
  • About Us
The subscription service is currently unavailable. Please check again later.
Fulltext search
FILTER RESULTS BY:
New Main menu
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
  • Brick Report
  • About Us
    • About Us
    • Advertise
  • About Us
SUBSCRIBE TO OUR NEWSLETTER →
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Ask a Co-op & Condo Lawyer [ SPONSORED ]

What disclosures and clauses should go in the contract when you're buying an apartment in NYC?

By Wagner, Berkow, and Brandt  | July 6, 2017 - 1:59PM
image
SHARE:
Share to Facebook
Share to Twitter
Print
More...

I’m buying my first apartment. What sort of disclosures should I make sure the seller puts in the contract?

In addition to disclosures that are standard to most New York City sales contracts, there are certain extras it's wise to have your attorney add into your paperwork before the closing, says Steven Wagner, a co-op and condo attorney with Wagner Berkow LLP who's been advising buyers and negotiating contracts for more than 30 years in New York City.

"One of the first priorities is to make sure that the form of contract being used is the standard form that's been approved by the New York City Bar Association, and that it's up to date," says Wagner. (For reference, the New York City bar has a standard contract available on their website.)

A standard sales contract should include information about any alterations the seller made to the apartment. However, Wagner adds, you should also ask for written confirmation that the alterations were done legally, with the proper city permits and go-ahead from the building's management.

"I like to include a clause that the alterations have all been approved by the board, performed in accordance with the law, and given all necessary signoffs—for instance a letter of completion from the city or Department of Buildings," Wagner explains. "Be careful that when there's been a Certificate of Occupancy change, things were done correctly. You want to make sure everything’s been signed off on, so that on day one in your new apartment, everyone in the building isn't angry at you because the person before you did something wrong."

Another common clause is one stating that all the home's appliances and utilities are in good working order at the time of the sale, says Wagner, though for certain deals like estate sales, sellers may not wish to confirm that in writing, as they might not be sure themselves.

"You see that one getting negotiated, but the standard is that everything is in good working order on the day of contract on the day of closing," says Wagner.  (Though still be sure to do a careful walk-through and check small things like electrical sockets.)

Below, a few more clauses the savvy buyer should look into adding to the contract before signing on the dotted line:

  • The condition of the apartment: If the seller has fixtures and furniture to remove from the apartment, Wagner advises a clause guaranteeing the quality of the walls and countertops. (For instance, that there be no nicks or holes larger than the size of a dime.) "If they're yanking things off the wall, maybe they need to do some spackling and painting," says Wagner. Either that, or you can agree to do the work, and then use that as leverage in negotiations. Similarly, the contract should include confirmation that the seller has not received notice from the building that they're obligated to perform outstanding repairs or maintenance in the apartment.
  • Quality of life: To ensure that the seller isn't ditching an unlivable apartment and leaving you holding the bag, Wagner suggests a clause in the contract confirming that in the past year, the seller (or someone representing the seller) hasn't made any complaints to the management about noise, odors, "offensive conduct," heat or hot water problems, "Or any other disturbance or adverse condition affecting the unit."
  • No surprise tenants: For obvious reasons, it's always good to have a clause in place confirming that there are no leases, tenancies, sub-leases, or sub-tenancies currently in the possession of (or claiming right to occupy) the apartment you're about to buy. 
  • No surprise brokers: On a similar note, while it seems obvious, both you and the seller can protect yourselves by specifically naming your respective brokers as the sole brokers on the deal. "Brokers sometimes show up out of the woodwork afterwards claiming they had a part in the sale," Wagner explains. "So if you list the parties on the deal, then you and the seller can cross-indemnify each other against these kinds of claims."
  • What actually comes with the apartment: "Another thing that gets negotiated sometimes is what goes with the apartment and what doesn't," says Wagner. "It usually isn't that big of a deal with light fixtures, but what about the 55-inch-wide flatscreen attached to the wall?" These kinds of details can often trip up the proceedings at a closing, so it's wise to hammer them out ahead of time.
  • Who's paying the taxes. If there's a flip tax on the property, you'll want it clarified in writing that the seller will be covering these costs, or if they want you to pay it. This way you'll know in advance so you can use this as a point of negotiation. Similarly, says Wagner, your contract should specify who on the deal will be paying the transfer tax, a 1% to 1.425% tax levied on all real estate sales.
  • The contract has stayed intact: For another clause that will protect you against foul play (or even innocent copy-and-paste errors), Wagner suggests adding in language confirming that between the date of signing the contract and rider and the date of closing, nothing about the paperwork has been altered. (In other words, no one snuck anything in at the last minute that you're unwittingly signing onto.)
  • What happens if the board rejects you: Similar to mortgage contingencies, where you can lose your down payment if your financing falls through, Wagner recommends having your attorney scour the contract for language about the nature of your financial assets and liabilities. Some buildings have specific requirements about your financial information written into the contract. "Make sure if you have one of these clauses in the contract that all your financial information is accurate, and that when you put in your application to the board, it conforms with representation," Wagner explains. "Because if you get turned down, then you could get into a big dispute over the deposit." 
  • All these clauses will still be true post-closing. One last add-on to keep in mind: a provision that the conditions laid out in the contract "survive the closing." In other words, says Wagner, "You want to make sure things that affect the closing are actually true after the closing." While this won't apply for things like appliances being in "good working order" at the time of sale—if your dishwasher happens to break after you move in, you likely can't bother the seller about it—this is a helpful clause to have in place for other potential issues, such as finding out down the road that your apartment was combined illegally.

New York City real estate attorney Steven Wagner is a founding partner of Wagner, Berkow, & Brandt, with more than 30 years of experience representing co-ops, condos, as well as individual owners and shareholders. To submit a question for this column, click here. To arrange a free 15-minute telephone consultation, send Steve an email or call 646-780-7272. 

Related:

Got a toxic board member in your building? Here's how to handle it

How do I buy a co-op or condo under an LLC?

How to tell if your property manager is taking kickbacks—and what to do about it

How to keep your co-op and condo neighbors from renting out their apartments on Airbnb

How to update your co-op or condo building's pet policy

How to run for—and win—a co-op board election

Brick Underground articles occasionally include the expertise of, or information about, advertising partners when relevant to the story. We will never promote an advertiser's product without making the relationship clear to our readers.

topics:

Ask a Co-op & Condo Lawyer
SHARE
TWEET
BRICK’S PICKS
NYC apartment building with AC units
My neighbor's dripping AC is driving me crazy. What can I do?
Historic brick facades of NYC apartment buildings
Getting overcharged by a landlord? Here’s how the Tenant Protection Unit helps rent-stabilized tenants
Apartment buildings in Soho
New Rent Guidelines Board report justifies a rent freeze, tenant advocates claim
Brooklyn apartment buildings
Understanding net effective rent: Here's how to calculate your real monthly rent
image
How much should you renovate your NYC apartment or house before selling?
Council Member Shahana Hanif hold press conference before the City Council vote on Arrow Linen spot rezoning.
City Council signs off on 10-story towers for Arrow Linen site
Follow Brick on Instagram
@brickunderground | #brickunderground
Brick UndergroundBRICK UNDERGROUNDREAL LIFE. REAL ESTATE. REAL NEW YORK.
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Main menu footer
  • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide

Get more news you can actually use...

Email Address

Delivered to your inbox weekly - for free.

*By signing up you agree to receive occasional emails on behalf of our sponsors

Footer Menu
  • About Us
  • Advertise

Copyright 2009-2024 by BND Ventures Inc | Privacy Policy | Terms of Service | Ad Choices | Login