This New York co-op/condo review identifies critical governance and financial risks. Board meeting minutes reveal planned capital improvements that may trigger assessments. The property is subject to a Flip Tax payable on resale. PCDS (Property Condition Disclosure Statement) was either provided or the $500 credit was applied in lieu. Transfer tax obligations and maintenance-to-income ratios warrant close scrutiny.
| ID | Check | Risk | Findings & Evidence |
|---|---|---|---|
| TO1 | Tenure Type | High | Critical attention required for Tenure Type. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Is it Fee Simple, Condo, TIC, Co-op, or Leasehold land? Source: Tenure Type referenced in state-specific disclosure, title report, or official records. |
| TO2 | Vesting & Ownership | High | Critical attention required for Vesting & Ownership. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Identify Trusts, LLCs, or Individuals; check signatory authority. Source: Vesting & Ownership referenced in state-specific disclosure, title report, or official records. |
| TO3 | Sale Type | Low | Low risk identified for Sale Type. Documentation appears satisfactory based on initial assessment. Confirm with local professionals. Is it a Standard, Trustee Sale, REO, Probate, Partition, or Short Sale? Source: Sale Type referenced in state-specific disclosure, title report, or official records. |
| TO4 | Possession & Occupancy | Medium | Review recommended for Possession & Occupancy. State-specific regulations and provided documentation suggest potential implications. Is it Owner, Tenant, Squatter, Rent-back, or Vacant? Source: Possession & Occupancy referenced in state-specific disclosure, title report, or official records. |
| TO5 | Tenant Rights | Low | Low risk identified for Tenant Rights. Documentation appears satisfactory based on initial assessment. Confirm with local professionals. Are there Rent Control, Just Cause eviction, Section 8, or Lease termination risks? Source: Tenant Rights referenced in state-specific disclosure, title report, or official records. |
| ID | Check | Risk | Findings & Evidence |
|---|---|---|---|
| P1 | Property Condition | High | Critical attention required for Property Condition. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Describe overall condition (tear-down, shell, renovated). Any deferred maintenance? Source: Property Condition referenced in state-specific disclosure, title report, or official records. |
| P2 | Unpermitted Work | High | Critical attention required for Unpermitted Work. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Are there illegal additions, garage conversions, or unpermitted ADUs? Source: Unpermitted Work referenced in state-specific disclosure, title report, or official records. |
| P3 | Structural & Foundation | Low | Low risk identified for Structural & Foundation. Documentation appears satisfactory based on initial assessment. Confirm with local professionals. Are there foundation issues, settling, or structural engineering reports? Source: Structural & Foundation referenced in state-specific disclosure, title report, or official records. |
| P4 | Environmental Hazards | Medium | Review recommended for Environmental Hazards. State-specific regulations and provided documentation suggest potential implications. Is there Lead Paint, Asbestos, Mold, Underground Storage Tanks (USTs)? Source: Environmental Hazards referenced in state-specific disclosure, title report, or official records. |
| P5 | Natural Hazards | Medium | Review recommended for Natural Hazards. State-specific regulations and provided documentation suggest potential implications. Is it in a Flood Zone (FEMA), Fire Zone, Earthquake fault, or Landslide zone? Source: Natural Hazards referenced in state-specific disclosure, title report, or official records. |
| P6 | Pest & Wood | Low | Low risk identified for Pest & Wood. Documentation appears satisfactory based on initial assessment. Confirm with local professionals. Are there Termites, Dry Rot, Beetle infestation? Is there a Section 1 clearance? Source: Pest & Wood referenced in state-specific disclosure, title report, or official records. |
| P7 | Utility Infrastructure | High | Critical attention required for Utility Infrastructure. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Check Sewer Lateral compliance, Septic Tank, Well, and Lead Service Lines. Source: Utility Infrastructure referenced in state-specific disclosure, title report, or official records. |
| ID | Check | Risk | Findings & Evidence |
|---|---|---|---|
| L1 | Title Vesting & Quality | Medium | Review recommended for Title Vesting & Quality. State-specific regulations and provided documentation suggest potential implications. Is it insurable title? Are there gaps in chain of title? Source: Title Vesting & Quality referenced in state-specific disclosure, title report, or official records. |
| L2 | Liens & Encumbrances | High | Critical attention required for Liens & Encumbrances. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Are there Mechanics liens, Tax liens (IRS/State), Judgments, or Lis Pendens? Source: Liens & Encumbrances referenced in state-specific disclosure, title report, or official records. |
| L3 | Easements & Encroachments | Medium | Review recommended for Easements & Encroachments. State-specific regulations and provided documentation suggest potential implications. Are there shared driveways, utility easements, or fence encroachments? Source: Easements & Encroachments referenced in state-specific disclosure, title report, or official records. |
| L4 | Covenants (CC&Rs) | Low | Low risk identified for Covenants (CC&Rs). Documentation appears satisfactory based on initial assessment. Confirm with local professionals. Are there use restrictions, age restrictions, or pet restrictions? Source: Covenants (CC&Rs) referenced in state-specific disclosure, title report, or official records. |
| L5 | Pending Litigation | Medium | Review recommended for Pending Litigation. State-specific regulations and provided documentation suggest potential implications. Is there any Lis Pendens, foreclosure action, or quiet title suit? Source: Pending Litigation referenced in state-specific disclosure, title report, or official records. |
| L6 | Foreclosure/Redemption | Low | Low risk identified for Foreclosure/Redemption. Documentation appears satisfactory based on initial assessment. Confirm with local professionals. Is there a Right of Redemption (IRS or State)? Is it a Judicial foreclosure? Source: Foreclosure/Redemption referenced in state-specific disclosure, title report, or official records. |
| L7 | Severed Rights | High | Critical attention required for Severed Rights. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Are Mineral, Oil, Gas, or Air rights severed? Is there a surface waiver? Source: Severed Rights referenced in state-specific disclosure, title report, or official records. |
| ID | Check | Risk | Findings & Evidence |
|---|---|---|---|
| H1 | HOA Financials | High | Critical attention required for HOA Financials. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Are the Reserves healthy (>70% funded)? Is there a budget deficit? Source: HOA Financials referenced in state-specific disclosure, title report, or official records. |
| H2 | Special Assessments | High | Critical attention required for Special Assessments. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Are there approved or anticipated special assessments? Source: Special Assessments referenced in state-specific disclosure, title report, or official records. |
| H3 | Litigation | High | Critical attention required for Litigation. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Is the HOA involved in construction defect or other litigation? Source: Litigation referenced in state-specific disclosure, title report, or official records. |
| H4 | Rental Restrictions | High | Critical attention required for Rental Restrictions. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Is there a Rental Cap, min lease term (30 days), or STR ban? Source: Rental Restrictions referenced in state-specific disclosure, title report, or official records. |
| H5 | Rules & Violations | Medium | Review recommended for Rules & Violations. State-specific regulations and provided documentation suggest potential implications. Are there active violations against the unit? Architectural guidelines? Source: Rules & Violations referenced in state-specific disclosure, title report, or official records. |
| H6 | Board Minutes | High | Board meeting minutes (2024-2025) reveal planned lobby renovation ($1.2M), elevator modernization ($800K), and facade repair (Local Law 11 compliance). Special assessment likely in Q3 2026. Source: Board Minutes referenced in state-specific disclosure, title report, or official records. |
| ID | Check | Risk | Findings & Evidence |
|---|---|---|---|
| Z1 | Zoning Code | Low | Low risk identified for Zoning Code. Documentation appears satisfactory based on initial assessment. Confirm with local professionals. What is the Zoning (e.g., R1, R2, Commercial)? Does use match zoning? Source: Zoning Code referenced in state-specific disclosure, title report, or official records. |
| Z2 | Land Use Restrictions | High | Critical attention required for Land Use Restrictions. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Are there Historic District rules, Coastal Commission, or specific overlays? Source: Land Use Restrictions referenced in state-specific disclosure, title report, or official records. |
| Z3 | Development Potential | High | Critical attention required for Development Potential. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Can you add an ADU? Split the lot? SB9 capability? Source: Development Potential referenced in state-specific disclosure, title report, or official records. |
| Z4 | Code Violations | Low | Low risk identified for Code Violations. Documentation appears satisfactory based on initial assessment. Confirm with local professionals. Are there open Order to Comply, Red Tags, or Abatement notices? Source: Code Violations referenced in state-specific disclosure, title report, or official records. |
| Z5 | Short Term Rental | Medium | Review recommended for Short Term Rental. State-specific regulations and provided documentation suggest potential implications. Is Airbnb/STR allowed by city ordinance? Source: Short Term Rental referenced in state-specific disclosure, title report, or official records. |
| ID | Check | Risk | Findings & Evidence |
|---|---|---|---|
| F1 | Purchase Price & Deposit | Low | Low risk identified for Purchase Price & Deposit. Documentation appears satisfactory based on initial assessment. Confirm with local professionals. Confirm the non-refundable deposit amount/percentage. Source: Purchase Price & Deposit referenced in state-specific disclosure, title report, or official records. |
| F2 | Special Taxes & districts | High | Critical attention required for Special Taxes & districts. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Are there Special Improvement Districts (SIDs/LIDs) or PACE liens? Source: Special Taxes & districts referenced in state-specific disclosure, title report, or official records. |
| F3 | Transfer & Recordation | High | Critical attention required for Transfer & Recordation. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Who pays City/County Transfer Tax? Who pays Recording fees? Source: Transfer & Recordation referenced in state-specific disclosure, title report, or official records. |
| F4 | Prorations & Credits | Low | Low risk identified for Prorations & Credits. Documentation appears satisfactory based on initial assessment. Confirm with local professionals. How are property taxes and HOA dues prorated? Any seller credits? Source: Prorations & Credits referenced in state-specific disclosure, title report, or official records. |
| F5 | Closing Timeline | Medium | Review recommended for Closing Timeline. State-specific regulations and provided documentation suggest potential implications. Is it strict 30-day closing? Is there a per diem penalty? Source: Closing Timeline referenced in state-specific disclosure, title report, or official records. |
| F6 | Flip Tax | High | A 2% Flip Tax is payable by the seller on the gross sale price. This is standard for this co-op and is used to fund the building's reserve. Source: Flip Tax referenced in state-specific disclosure, title report, or official records. |
| ID | Check | Risk | Findings & Evidence |
|---|---|---|---|
| S1 | Seller Disclosures | Medium | Review recommended for Seller Disclosures. State-specific regulations and provided documentation suggest potential implications. Summary of Seller Property Disclosure Statement (if provided). Source: Seller Disclosures referenced in state-specific disclosure, title report, or official records. |
| S2 | Title Commitment | Low | Low risk identified for Title Commitment. Documentation appears satisfactory based on initial assessment. Confirm with local professionals. Summary of Title Commitment requirements and exceptions. Source: Title Commitment referenced in state-specific disclosure, title report, or official records. |
| S3 | Local Reports | High | Critical attention required for Local Reports. Documentation review indicates potential compliance or valuation concerns that should be verified by qualified local professionals. Summary of any mandatory local city/county reports. Source: Local Reports referenced in state-specific disclosure, title report, or official records. |
Disclaimer: This report is for information purposes and does not constitute formal legal advice. Always consult with a qualified real estate professional or attorney.
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