WHFirm Attorneys Give Lecture on NYC Real Estate Topics
Congrats to WHFirm Partners Jack Harari and Michael Zadjelovich, who recently taught a continuing education course in partnership with MiT National Land Services.
The December 4 lecture, aimed at real estate brokers and other professionals in the industry, explored the due diligence process that occurs early in a real estate purchase, including the small details, best practices, and potential pitfalls that need to be understood in order to secure a smooth road to closing. They also shared a number of helpful resources that can help to navigate the due diligence process more efficiently.
We would like to extend our thanks to all of the guests who were able to attend, and to MiT National Land Services for offering to host us.
A Purchaser’s Guide to NYC Real Estate: What Is an Offering Plan?
For clients buying into a Condominium or Cooperative, often their broker or attorney will provide them with a massive tome called the “Offering Plan.”
When faced with approx. 500 pages of potential homework, clients often ask: what is this, why is it important, and do I really need to read the whole thing?
Here’s what you need to know:
What is it?
The Offering Plan is presented to the initial buyers purchasing directly from the Sponsor/Developer. It represents what the Sponsor committed to constructing prior to the building being built or converted to a condominium or cooperative. The Offering Plan is then passed from seller to buyer like an heirloom tied to the unit.
Why is it important?
If buying a new construction unit, the Offering Plan (with any amendments) may be your sole source of diligence. If the building is not yet constructed, it will tell you what you are putting your money towards. Sponsors will need to deliver a unit in accordance with both the Offering Plan and the Purchase Agreement.
For resale transactions, the information becomes increasingly dated and may no longer be relevant. These buyers should be careful not to rely solely on the initial Offering Plan with respect to their individual unit or the overall condition of the building, but all unit owners still need to keep the Offering Plan in a safe place to pass on to their future buyers.
What should I focus on if reading the Offering Plan?
Diligence is conducted until a purchaser is happy and comfortable proceeding, so the level to delve into any of these documents is self-determined. For buyers hoping to personally review the Offering Plan, finding the table of contents or index in the first few pages is crucial for helping locate the following key sections:
- “Schedule A” – this is a snapshot of the building showing a list of units at the time of the offering, original percentage of common interest/shares, the original purchase price, number of rooms, projected common charges/maintenance, and initial treatment of any storage, parking spots, terraces – to the extent these exist in the building.
- “Special Risks” – this section expands on the additional risks associated with the project. Cautious buyers may review this section for things ranging from how to care for the wooden flooring and limited warranties for the unit and/or building to the existence of lot line windows (windows that may need to be boarded up in the future).
- “Floor Plans” – floor plans are rare finds in the offering plans of cooperatives and older buildings. When found, they are helpful to compare against the current configuration of the unit for any alterations to the unit that may have been done by the current or prior owner.
- “Description of Property” and any Architects Report – these sections may contain projected structural information about the building, materials used, appliances installed, building amenities, and systems. Sometimes this can be helpful identifying materials used in the past that are no longer acceptable in the present (e.g., asbestos and lead paint).
- “By-Laws” and other governance documents – initial by-laws, documents for board governance, and initial ownership documents are typically towards the back of the Offering Plan. For purchasers into a cooperative, a copy of the Proprietary Lease is generally included with the original house rules.
Lastly, please note that the Offering Plan may have been continually amended by the Sponsor/Developer, so it’s important to check that the information you are reviewing has not been overridden by a later amendment.
Of course, you should always let your attorney know if any questions!
NYC Real Estate Attorney’s Closing Report: October 2018
Just a few of our recent closings. If you are also looking to buy or sell at these property addresses, you might want to give us a call.
| Property | Value | Transaction |
| 418 East 59th Street, NY, NY | $2,070,000 | Coop Purchase |
| 608 Lorimer Street, BK, BY | $665,000 | Condo Purchase |
| 325 West 45th Street, NY, NY | $610,000 | Coop Purchase |
| 5 Tudor City Place, NY, NY | $362,000 | Coop Sale |
| 280 Saint Marks Avenue, BK, NY | $1,475,000 | Condo Purchase |
| 267 West 71st Street, NY, NY | $450,000 | Coop Purchase |
| 2128 Ocean Avenue, BK, NY | $500,000 | Condo Purchase |
| 300 East 64th Street, NY, NY | $670,000 | Condo Sale |
| 1275 East 51st Street, BK, NY | $185,000 | Coop Purchase |
| 167 Perry Street, NY, NY | $1,200,000 | Coop Purchase |
Hello Neighbor! Dwayne Johnson Production Company Leasing at 10 Grand Central
According to the New York Post, our firm will have a new neighbor! According to the article, Seven Bucks Productions, a media company owned by actor and Hollywood star Dwayne “The Rock” Johnson, has reportedly decided to lease at 10 Grand Central.
This is good news for building owner Marx Realty, who have begun extensive renovations in the hopes of raising the profile of the property. As part of the upgrades, the address is changing from “708 Third Avenue” to “155 East 44th Street,” and the Third Avenue entrance will eventually be closed.
NYC Real Estate Attorney’s Closing Report: September 2018
Just a few of our recent closings. If you are also looking to buy or sell at these property addresses, you might want to give us a call.
| Property | Value | Transaction |
| 261 West 25th Street, NY, NY | $2,250,000 | Condo Purchase |
| 729 Hancock Street, BK, NY | $2,149,000 | House Purchase |
| 50 Lexington Avenue, NY, NY | $1,250,000 | Coop Sale |
| 3701 Henry Hudson Parkway, Riverdale, NY | $244,500 | Coop Purchase |
| 17 Chittenden Avenue, NY, NY | $580,000 | Coop Purchase |
| 350 West 53rd Street, NY, NY | $1,650,000 | Condo Purchase |
| 20 93rd Street, BK, NY | $530,000 | Coop Sale |
| 255 East 138th Street, BX, NY | $910,000 | Condo Purchase |
| 605 West 111th Street, NY, NY | $825,000 | Coop Purchase |
| 345 East 93rd Street, NY, NY | $680,000 | Coop Purchase |
WHFirm Attorneys Give NYC Real Estate Lecture at AgentStudio
Firm Partners Jack Harari and Michael Zadjelovich recently presented a lecture in partnership with AgentStudio, aimed at familiarizing NYC Realtors with the Due Diligence process.
We would like to extend out thanks to the attendees, and for AgentStudio for organizing and hosting the event!
The Long View: A Note on Mortgage Rates for Prospective Real Estate Purchasers
Freddie Mac recently posted an update on mortgage rates, noting that as of December 6, 2018, the recent trend toward rising rates was punctuated by a welcome pullback amid a steep sell-off in U.S. stocks. However, the informative chart that accompanies their report makes an interesting point that we believe is worth exploring.
This chart, while showing recent trends in mortgage rates, goes back much further – all the way to 1970. Despite the recent talk about rising rates, it is worth noting that even though current rates are up relative to the past 8 years, they are still lower than they were 30-years prior. For example, interest rates peaked in October 1981 at almost 19%, and during the 20-year period from 1973 to 1993 were over 8% – nearly twice the percentage at the time of the December 6 update.
From that perspective, interest rates are currently at a historic low, the lowest 10-year average in the last 42 years.
Even though recent financial news usually concerns rising rates, it is also worth mentioning that within these trends there are often pullbacks, such as the one referred to in the December 6 update.
NYC Real Estate Attorney’s Closing Report: August 2018
Just a few of our recent closings. If you are also looking to buy or sell at these property addresses, you might want to give us a call.
| Property | Value | Transaction |
| 204 West 85th Street, NY, NY | $2,050,000 | Coop Purchase |
| 24-12 42nd Road, LIC, NY | $583,000 | Condo Purchase |
| 261 West 25th Street, NY, NY | $1,325,000 | Condo Purchase |
| 100 Riverside Boulevard, NY, NY | $2,150,000 | Condo Sale |
| 244 Madison Avenue, NY, NY | $735,000 | Coop Sale |
| 170 South 1st Street, BK, NY | $1,824,000 | Condo Purchase |
| 1536 Brooklyn Avenue, BK, NY | $830,000 | House Purchase |
| 205 West 54th Street, NY, NY | $530,000 | Coop Sale |
| 460 Ovington Avenue, BK, NY | $348,000 | Coop Sale |
| 70 East 10th Street, NY, NY | $1,200,000 | Coop Purchase |
We Have (Not) Moved!
As recent visitors to our office will no doubt have noticed, our building has been undergoing extensive renovation and re-branding during the last couple of months. Not only will the existing lobby be upgraded, but a state-of-the-art lounge area will soon open on the 7th Floor.
As part of this upgrade, our building has officially changed its address. It is now:
10 GRAND CENTRAL
155 East 44th Street
New York, NY 10017
Don’t worry though: mail sent to “708 Third Avenue” should still reach us, and our office location on the 19th floor remains the same as ever it was.
See below for some pictures of the improvements in progress:
Concept for the new main entrance
The newly finished 7th-floor lounge
The outdoor portion of the new lounge
NYC Real Estate Attorney’s Closing Report: July 2018
Just a few of our recent closings. If you are also looking to buy or sell at these property addresses, you might want to give us a call.
| Property | Value | Transaction |
| 415 Grand Street, NY, NY | $785,000 | Coop Purchase |
| 300 East 85th Street, NY, NY | $1,250,000 | Coop Sale |
| 264 Lexington Avenue, NY, NY | $915,000 | Coop Purchase |
| 66 Overlook Terrace, NY, NY | $639,000 | Coop Purchase |
| 250 East 87th Street, NY, NY | $1,785,000 | Coop Purchase |
| 420 East 58th Street, NY, NY | $640,000 | Condo Purchase |
| 16 Tremper Avenue, Phoenicia, NY | $297,500 | House Purchase |
| 273 6th Avenue, BK, NY | $1,600,000 | Coop Purchase |
| 1054 Mora Place, Woodmere, NY | $685,000 | House Refinance |
| 105 Park Place, BK, NY | $780,000 | Coop Purchase |