How to find your perfect home. A Guide for First-time Buyers by the Griffith-Scholz Team
How to find your perfect home. 4
The Purchase Process
5
Understanding Co-ops and Condos
5
History of Co-ops
5
Advantages and Disadvantages of Co-ops
5 Advantages
6 Disadvantages
6
Condominiums
7
Review of Cooperatives (Co-ops)
7
Review of Condominiums
8
Getting Through a Co-Op Board
9
Buyer Closing Costs For Co-Ops
9
Buyer Closing Costs for a Condo or Townhouse
10
Home Insurance
11
First Time Buyer Program
12
Program Terminology
Introduction
I
ntroducing Griffith-Scholz—a lifestyle real estate
The New York City real estate scene is constantly
team creating a culture defined by an unparalleled
changing. Often the best apartments and deals
level of hospitality, service, and knowledge in an
move before even reaching the market. The Griffith-
increasingly competitive New York City real estate
Scholz team has years of established relationships
market. We have devised this guide to assist buyers
throughout New York City, and is ready to leverage
in what may initially seem like a daunting process.
these contacts for your search. Our team pounds the
We understand and appreciate our clients entrusting
pavement day-in and day-out to ensure that we have
us with one of the largest investments they will make.
the most up-to-date information available. In a market
We want to be sure to guide to you every step of
constantly flooded by information, the Griffith-Scholz
the way and provide thorough understanding of the
team is experienced in extracting only the most
market and purchase process.
relevant content for your search, providing you with whatever you need to find your dream home.
3
The Purchase Process Start out with a neighborhood (Manhattan, Brooklyn,
Gain
or Queens) choice and a budget in mind.
chosen—its financial and physical condition (house
information
about
the
building
you’ve
inspections, lease terms, etc.). Your agent and Consult your real estate broker, mortgage broker
your lawyer will guide you in this process and your
and/or banker regarding a mortgage. (If you need
attorney will go through the “due diligence process”.
to know how much you can afford, find out before
Going to contract: The seller’s attorney prepares
looking.)
the contract and forwards it by messenger to your attorney. Both attorneys consult and agree on all points.
Select a real estate attorney, someone who specializes in Manhattan real estate. Suburban lawyers or lawyers who specialize in other fields
Signing the contract: You sign it first, then it’s sent
can spell trouble or delay.
back to the seller’s attorney to obtain the seller’s signature. A down payment is expected at this point—usually 10% of the contract price, which is
Discuss with your real estate agent a negotiating
held in the seller’s attorney’s escrow account.
strategy and make an offer. In New York City, offers are submitted verbally or via e-mail, and
Complete the mortgage application, if any.
negotiations proceed back and forth and will be confirmed in writing until all aspects of the sale have been agreed to—price, amount to be financed,
The bank that is providing the mortgage will arrange
occupancy date, closing date, disposition of lighting
to have the building appraised.
fixtures, etc. Closing is arranged by the seller’s and buyer’s Accepting the offer: There is no legal obligation
attorneys, in conjunction with the lender.
between buyer and seller until a contract is signed. In a hot market, this process should move quickly.
The entire process can take between one and a half to four months. 4
Understanding Co-ops and Condos Co-ops – Manhattan’s Primary Housing Style
Hall. But according to the New York Times, despite
Co-ops (short for “cooperatives”) are apartment
their utopian origins, co-ops quickly turned into a
buildings owned by a corporation. Individual tenants
celebration of capitalism and exclusivity. Soaring new
do not own their apartments in exactly the same
Hubert Home Clubs opened on Madison Avenue
way that they would a condominium or home. They
and next to Central Park, offering the sort of living
actually own shares of stock in the corporation.
space that has always made New Yorkers envious,
These shares are apportioned based on the size
according to the writer Elizabeth Hawes. Today, co-
and floor level of their apartment and ownership is
ops-which sell shares in a corporation that owns the
established by a stock certificate and occupancy is
building, rather than individual apartments– make
governed by a “proprietary lease.” The corporation
up the bulk of our housing. As always, the boards
pays all real estate taxes, maintenance expenses,
have the right to reject any buyer who doesn’t quite
and the underlying mortgage on the building. The
fit, however they define “fit.” Socialism turned into
co-op owner’s portion of the payment depends on
New York style elitism? Yes, indeed.
the number of shares owned in the corporation. Cooperative ownership is the most common form
Advantages and Disadvantages of Co-ops
of apartment ownership in New York City. There
Advantages
are three times as many co-ops as there are
1. The tenant-owners elect a Board of Directors,
condominiums in Manhattan, which means that
whose responsibility is to meet, interview and
there are more cooperative apartments on the
“approve” or “disapprove” a prospective owner,
market and they are likely to be more affordable
thereby protecting the present tenants’ interest
than similarly sized condominiums.
by approving only qualified candidates. 2. Cooperative ownership offers a more stable
History of Co-ops
community environment. Residents tend to stay
If the idea of going through a co-op board
for longer periods of time, and few co-ops allow
sounds a little un-American and intrusive, well…
extensive subletting, preferring a high owner-
it is. Cooperative living got its start in the 1880s,
occupancy.
inspired by Charles Fourier, a French socialist who
3. A large portion of the monthly maintenance
argued that cooperation bred efficiency. A French
fee paid by each shareholder is tax deductible,
immigrant to New York named Philip Hubert picked
i.e., the pro-rata share of the corporation’s real
up on the idea and built arguably the first co-op, the
estate taxes, as well as the building’s underlying
Hubert Home Club, near the current site of Carnegie
mortgage payment.
5
Disadvantages
Sponsor units command a premium because people
1. The board often requires a large cash down
who might not pass a board can buy them. For
payment. Usually prospective purchasers are
example, a sponsor unit would be a good choice
required to put 25% down. Some co-ops may
for parents who want to buy an apartment for a
require more. Many of the most exclusive
child who is a student. A sponsor unit may be the
buildings permit no financing at all.
best apartment for someone who is not working, or
2. Most co-ops prefer owners to be occupants;
only has a short job history. Basically, if you aren’t a
therefore subletting an apartment may be
candidate for a co-op building and can’t quite afford
difficult. Each co-op board has its own set
a condo, keep an eye out for a sponsor unit!
of rules, but generally speaking, subletting
Buyers of a sponsor unit should take note that
will have to be approved by the board, and
they will need to pay New York State and New York
permission is usually granted for no more than 2
City transfer taxes, and often the seller’s attorney
years. Some co-ops, however, are more flexible
fees. You still have to submit a board package and
and are known as “easy boards”.
you almost always have to abide by the building’s
3. Owners are normally not allowed to use
house rules as far as sublet requirements and pets.
their apartments for professional or business
Although it varies from sponsor to sponsor, you
purposes.
may be able to put down less than the minimum financing normally required by the building.
4. Almost all renovations to individual apartments will have to be approved by the board.
Condominiums
5. Owners who wish to sell their apartments will have to have the new buyer approved by the
Owning a condominium in Manhattan is the same
board through the application process.
as owning one anywhere else. It is a fee simple
6. Often co-cops impose a tax on selling called
ownership and the buyer receives a deed in a
a “flip tax” to compensate the co-op for the
formal title transfer. Monthly payments to the
inconvenience of someone new moving in. The
condominium are called “common charges”, and
monies go to the co-cop treasury and often
they are used strictly for maintenance and upkeep
help keep monthly maintenance down.
of the jointly owned areas. Of course, the amount of interest on the owner’s personal mortgage is fully tax-deductible. Real Estate taxes are paid directly
Sponsor Unit
to the city.
Apartments that are held as an investment by
Fee simple ownership gives owners the right to
the sponsor—the original developer who built
rent their own apartment, a place for some people.
the building or converted the building to a co-op.
Mortgage amounts can be as high as 90% of the
Sponsor apartments are usually exempt from board
sales price if the buyer qualifies. Often there is
approval.
not a formal application process, so the time from
There are some other important things to note;
contract signing to closing is usually shorter.
6
Review of Cooperatives (Co-ops) OK, now that we have gotten through this aspect of
Applicants must provide financial and social
New York real estate, here’s a little review to make
information to the Board of Directors and will also
sure we were clear:
be required to attend a personal interview.
The cooperative corporation owns the building
The Board of Directors may accept or reject
and the tenant (unit owner) owns shares of stock
applications without furnishing a reason.
(assigned according to size and type of apartment). There are both modern and older co-op buildings, however, most prewar buildings are co-ops.
Co-ops are governed by a board of directors (resident
shareholders)
that
determines
the
requirements for applicants.
Cooperative ownership also involves a monthly maintenance fee (for building upkeep), preservation
The co-op application process is quite lengthy and
of common areas, staff salaries, etc.) that is based
may require flexibility in terms of occupancy date.
upon the number of shares assigned to a particular owner. The monthly maintenance charge also
Renting in a co-op building is referred to as
encompasses an owner’s share of building real
subleasing. Prospective subleasors are subject to
estate taxes. This portion of the maintenance is tax
the same application process as someone wishing
deductible.
to become a shareholder.
Review of Condominiums Use of on-site health club and pool is sometime
Condominiums are considered real property.
included in the monthly common charges. Some condominiums require a purchaser to submit detailed financial and social information. A personal
Condominium ownership also involves a monthly
interview is usually not required.
fee called Common Charges (for building upkeep, preservation of common areas, staff salaries,
The condominium application process can be
etc.) that is based upon the square footage of a
quite lengthy and may require flexibility in terms of
particular owner’s apartment. Real estate taxes are
occupancy date.
excluded from the common charges and are paid to the City separately. Real estate taxes are, however, tax deductible.
Condominium buildings account for approximately 20% of the total ownership buildings in Manhattan. 7
Getting Through a Co-Op Board A major aspect of purchasing a co-op apartment is
managing agent to obtain a credit check on each
completing a purchase application and assembling
applicant. Sign it.
financial documents and references, which together
Contract of Sale: A copy will be acceptable.
are commonly referred to as “The Board Package.”
Financial Statement: A blank form is usually
First time co-op buyers are often shocked by
provided in the package. Basically, a statement of
the amount of confidential material required by
all assets and liabilities and supporting documents.
boards. Just be assured that the information is kept
It is very important that all sums on the statement
confidential.
reconcile with the attached supporting documents.
The primary purpose of the Board Package is
For instance, don’t list a checking account balance
to assure the corporation of your financial ability
as of January 1, and then include the February
to carry the apartment (boards are tougher than
statement as backup. Every item on the statement
banks) and to give them confidence that you will
(except for personal property) needs documentation.
be a “cooperative” shareholder and a welcomed
Reference Letters: A combination of personal and
member of their community.
business references. We recommend that these
Each co-op has its own set or requirements and
letters be taken seriously. Please ask your friends
application form which we can obtain for you from
and associates to be specific in their anecdotes
the building’s managing agent.
and glowing in their comments. These letters are an
Our two main recommendations are these:
opportunity for a Board to “get to know you.” They
1. Read the instructions on the cover page
also provide subjects for the interview discussion.
carefully and plan to provide ALL the
Tax Returns: Many co-ops require the last one or
information requested.
two most recent tax returns. Landlord References: Verifying your past prompt
2. Be sure your application, references and
payment of rent or maintenance charges.
supporting documents are neat and clear.
Board Interview: Approximately two weeks after The most common elements of a Board Package are:
the completed Board Package has been submitted
Purchase Application: Should be typed. Fill in all
to the managing agent, you will be called for an
the blanks and answer all questions: name, address,
interview. If your schedule has unusual constraints
social security number, name of attorney, schools
that would limit your availability for meeting with the
attended, etc.
board, we will indicate this in your cover letter for
Credit Release Form: Your permission for the
the board package.
8
Buyer Closing Costs For Co-ops
For Condos or Townhouses
Buyer Closing Costs:
Buyer Closing Costs:
Own Attorney
varies*
Own Attorney
Managing Agent
Managing Agent Fee
(Recognition Agreement Fee) Credit Report Fee
$250 + up
$50 + up per applicant
Mansion Tax
1% of purchase price when over $1 million
Lien Search
$50 + up per applicant
Title Insurance, Title Search & Recording Fees
Approx. $4 per 1,000 of purchase price $75 + up
1% of purchase price when over $1 million
Move-in Deposit $500 + up (usually refundable if no damage)
Mortgage-Associated Fees: points 0 – 3% value of loan
Application, Credit Check, etc.
$500 + up
Appraisal
$275 + up
Bank Attorney
$600 + up
Maintenance Adjustment
Credit Report Fee
Mansion Tax
$250 – $350
UCC-1 Filing
$250 + up
Lead Based Paint Disclosure Fee
Move-in Deposit $500 + up (usually refundable if no damage)
Origination Costs
varies*
Common charges, real estate taxes, and insurance premium
Adjustments prorated as of closing
Mortgage-Associated Fees: Origination Costs
$75 + up Prorated for month of closing
points 0 – 3% value of loan
Application, Credit Check, etc.
$500 + up
Appraisal
$275 + up
Bank Attorney
$600 + up
Mortgage Recording Tax up to $500,000 is 1.8% of mortgage less $30; over $500,000 is 1.925% of mortgage less $30 Building Searches
$200 – $400
Recording Charge
$17 per document + $5 per page
Real Estate Tax Escrow
2 – 6 months
If Purchased Directly From Sponsor: NYC Real Property Transfer Tax (i.e.: new construction) Transfer taxes are calculated and added to purchase price (for tax purposes only) and then NYS Transfer Tax recalculated based on the bulked price. Sponsor’s Attorney Fee is $1,800 + up. Working capital fund contribution is a one time fee equal to 1 or 2 months common charges.
9
Pre-Qualify For Your Mortgage You might have an idea of the loan payment and mortgage you can afford. But will the bank feel otherwise? It’s always best to pre-qualify for a mortgage so you know exactly how much a financial institution would be willing to lend you. In the pre-qualification process, you will find out: •
Exactly how much you can afford.
•
How much cash you will need for the down payment.
•
The minimum down payment, and advantages of higher down payments.
•
What the bank feels you can afford for a monthly payment.
Contact Information of Our Preferred Mortgage Brokers and Attorney
Adam Turkewitz
Thomas Wiggin
Deborah Blumenfield
Private Mortgage Banking Sales Supervisor
Assistant Vice President
Graubard & Associates, P.C.
Citibank, N.A.
65 West 36th Street
666 Fifth Avenue, Floor 12B
9th Floor
New York, NY 10103
New York, NY 10018
Thomas.Wiggin@citi.com
deborah@graubard-law.com
Office: 212-559-1343
Office: 212-447-0500 x310
NMLSR ID 32900 Wells Fargo Home Mortgage 150 East 42nd Street, 32nd Floor New York, NY 10017 Adam.Turkewitz@wellsfargo.com
Cell: 917-847-7609
Office: 917-260-1155 Cell: 516-456-3687
Home Insurance When purchasing a townhouse or a condo, you will need to acquire homeowners insurance. If you are purchasing a co-op, then apartment insurance may be sufficient. Most lenders will require a policy be in force prior to funding the loan. Make sure you have enough coverage, should anything happen. Policies refer to “replacement costs” that may not cover everything. You should ask your insurance agent a lot of “what if” questions. The deductible amount also plays a big part in setting your premium. Higher deductibles lower the number of claims, and reduce your insurance costs. Check with your insurance agent for more information on these issues, and any others. If you don’t have an insurance agent, we have access to several top-notch agents we can refer you to with confidence. 10
Our First Time Buyer program is here to help. We understand the anxiety inherent in purchasing
Neighborhood Education: Manhattan is a borough
your first home (especially when it’s a co-op or
of many neighborhoods and each has its own
condo in Manhattan). It has a lot to do with the
distinctive architectural style and personality. We
simple fact that this will be a purchase you’ve
will help you choose the right one for you.
never shopped for before and one that cannot be replaced or exchanged as easily as a sound system
Pre-Screened Apartments Appealing To Our
or a BMW.
Younger Buyers: We won’t waste your time showing
We also understand that the purchase is a major
you buildings that may require too much cash down
emotional, financial, legal process that requires
or other assets.
sound advice from professionals, and often the additional approval and/or reassurance from family
Advice On Selecting An Attorney: An experienced,
and friends.
patient, but quick-moving lawyer can move an
Griffith-Scholz Group’s First Time Buyer Program
acceptance to signed contract smoothly; who
is unique and guides our customers through the
is in New York and does 300 – 500 real estate
whole process. We focus our efforts on the following
transactions per year. They should charge a fixed
steps:
fee between $1500 and $5000.
Pre-Purchase Counseling Session: We review all
Practice Completing A Co-Op Board Application:
aspects of the search providing each prospective
Preparing an attractive and acceptable board
buyer an overview that gives first-time purchasers
package is one of the most time consuming and
the comfort level of second and third time buyers.
important steps in purchasing a co-op. Our guidance makes this a smooth, less annoying undertaking.
Financial Qualification:
Working
with
skilled
agents and mortgage brokers, our first time buyers
Concierge Service: We won’t abandon you at the
are pre-qualified for both condominium and co-op
closing. Our concierge can assist with hooking up
buildings.
the utilities, getting a mover, etc. Our customers become our neighbors and friends. 11
Terminology Abstract of Title
New York State stone. Also, a colloquial term for
A chronological summary of the recorded
townhouse. One to five floors. No doorman. Built
instruments and proceedings on the tile of a
in the late 1800s and early 1900s as single-family
property.
homes. Many were converted during World War
Air Rights
II to create multiple apartments (3-10 units per building). Brownstones have “charm”, high ceilings,
The right to build above or add square footage to
architectural details, and often wood-burning
a structure. These buildable rights are determined
fireplaces. Typically, square footage is generally
by city zoning regulations and public need. Air
less than a similar room count would provide in
rights can be sold to adjoining structures for a
a doorman building. Closet space and storage is
negotiated price between land owners. Many of
usually sparse.
the city’s taller structures have risen to their final height as a result of purchasing additional air rights
Built
from neighboring structures. Case in point is the
Refers to the actual exterior dimensions of a
Trump World Tower built on East 48th Street.
building on a lot. For instance, a townhouse might
Alcove
be built 20’ x 70’ on a 20’ x 100’ lot. Today, city zoning regulations impose tough restrictions on
An area adjoining the living room which can be
how large a new building may be built on a lot.
used for a dining area or be separated or closed off to make a bedroom, den or office.
Capital Improvement
Appraisal
An improvement on a piece of property which is going to increase the value of the property. Such
The process of determining the value of a property
an improvement may include a new roof, new
usually against values of other properties of
windows or a new elevator.
similar-type in the immediate neighborhood.
Certificate of Occupancy (C of O)
Assignment The right to transfer a contract or a lease from
Each building in New York City possesses a
one party to another. The term is often used to
Certificate of Occupancy which outlines the legal
describe the process of assigning one’s primary
uses of the piece of property. The Certificate of
lease to that of a second party until the end of the
Occupancy may allow a building owner to enjoy
term.
certain uses not allowed by the particular zoning in
Balcony
which the property falls.
An outdoor space that protrudes from a building.
Classic
Brownstone
In a pre-war building, an apartment which has a
A dwelling faced with brownstone, a native
formal dining room, and, in a larger apartment, one
12
or two maids’ rooms. A “classic 6”, for example, is
Duplex Apartment
a six-room apartment in a pre-war building that has
An apartment that is spread out over two levels.
a living room, formal dining room, two bedrooms,
EIK
kitchen, maid’s room, and 1, 2, or 3 baths. In the
The acronym used to describe an Eat-In-Kitchen.
larger classics, it is common to find the smaller
Elevator Building
maids’ rooms combined into one larger room.
Usually six to nine stories; and many are found
Frequently, pre-war buildings have been gutted
on side streets. Non-doorman building; many with
and “rehabbed,” but room counts and layouts
intercom security and live-in superintendents.
will usually be listed according to their original configuration.
En Suite Bathroom
Convertible, Flex or Junior
French term literally meaning ‘together’. In the realtor’s lexicon, this term refers to a bathroom that
An apartment with an alcove off the living room
is one with the adjoining bedroom. In other words,
which can be converted to another bedroom
one does not have to leave his/her bedroom in
or used as a dining area. A “convertible two-
order to go to the bathroom. This type of setup is
bedroom” or “flex two” is a one-bedroom
most common with Master Bedrooms.
apartment with a large alcove and one or two bathrooms.
Escrow
Co-Broke
The procedure of placing money in an account where neither buyer nor seller can access the
Perhaps one of the most important terms used
money without the consent of an escrow agent.
in the residential real estate market and the foundation for working with other brokers in the
Excellent
community. When a broker sends out his/her
In lieu of the term ‘mint’, some people use the
listings to the brokerage community at large, he/
word ‘excellent’ to describe the condition of an
she does so on a co-broke basis. This means that
apartment that is in a superb shape.
the brokerage firm representing the owner of the
Exclusive Listing
property will split the commission on a 50/50 basis
An exclusive listing is a listing promoted by a single
with the brokerage firm that brings the buyer or
broker for which he/she has been hired by an
tenant to the property and is able to conclude a
owner to market his/her property. In an exclusive
transaction.
right-to-sell arrangement, the individual broker has
Contract Out
the right to earn a commission in the event that the
Refers to the moment in time when a buyer and
property sells during the term of the exclusive. This
seller have agreed to a price on an apartment
type of arrangement precludes the owner of the
and the parties’ attorneys have drafted a contract
apartment from selling the property on his/her own.
of sale and have sent it to the purchaser for
Under the terms of an exclusive, the broker has the
signature.
fiduciary responsibility to market the property to
Courtyard
other brokers. The exclusive broker is accountable to the owner of the property and is responsible for
This term most often refers to the interior outside
seeing the transaction through its conclusion. The
grounds of a building. 13
other type of exclusive is an exclusive agency. The
Half-Bath
only difference between an exclusive right-to-sell
Refers to a bathroom with no bath or shower. A
and an exclusive agency is that in an exclusive
half-bath is also commonly referred to as a powder
agency arrangement, the owner can sell his/her
room.
property on their own and exclude the broker from
High Ceilings
any commission.
When we refer to high ceilings, one usually refers
Facade
to ceilings with a height of nine feet or more.
This is the front of a building. The facade can
In Contract
consist of any number of building elements,
Refers to the moment in time when a buyer and a
such as limestone, brownstone, cement, glass,
seller both sign a contract of sale.
granite, marble, and or any combination of the
Interest Rate
aforementioned.
The amount charged by a lending institution to
Fixed Rate
mortgage holders for the use of borrowed money.
One of two types of rates offered by lending
Rates can vary over time and are set by the
institutions. In a fixed rate scenario, the lender
Federal Reserve Board.
offers an interest rate which remains constant over
Junior
the term of the loan.
A “junior 4” would be a potential 4-room
Flex
apartment: living room, bedroom, kitchen, and
See “convertible” or “junior.”
alcove area (bathroom is not counted as a room).
Floating Rate
Keyed Elevator
One of two types of rates offered by lending
This terminology refers to a situation when an
institutions. In a floating rate scenario, the lender
apartment occupies an entire floor in a building. In
offers an interest rate which fluctuates with the
other words, the elevator opens up right into the
prevailing rates offered to lending institutions.
apartment on into a foyer which leads directly to
Floor-thru:
the particular apartment.
An apartment that extends from a building’s facade
Lease Assignment
to its rear wall, so that the unit exclusively occupies
When a lessee (tenant) must leave his/her apartment
an entire floor.
prior to the end of the particular lease and he/she
Foreclosure
remains responsible for the duration of the term. In
The process by which a lending institution takes
such an instance, the lessor (owner) will allow the
back a property because the property owner
lessee to assign the remaining term on the lease to
can no longer meet his/her monthly mortgage
a new tenant. However, in most situations like this, a
payment.
prudent owner/landlord will keep the original tenant
Furnished Units
on the lease and thus responsible for the remainder
Apartments which are fully equipped with furniture
of the term. Whether or not the owner/landlord
and amenities. Such apartments are for long or
allows the new tenant to remain in the apartment is
short term lease.
strictly at the discretion of the owner/landlord.
14
Lease
institution to provide him/her with a loan to
A legal document which outlines the
cover a large percentage of the purchase price.
responsibilities and parameters between a
A mortgage is a very common vehicle used in
landlord and a tenant.
the purchase of a home and most Americans
Loft Space
use this type of financing throughout their lives when they purchase property. There are several
By definition, this term refers to space which
components to a mortgage, including the interest
has been converted from commercial usage to
rate due on the loan (this can be either a fixed or
residential usage. This can include the conversion
floating rate), the term of the mortgage in number
of office space, factory space or warehouse
of years (usually 15 or 30) and the amount that
space. At present, there is a wave of conversion of
is being financed. Using simple math, one can
downtown space from commercial office building
figure out his/her monthly payments for the term
space to residential loft or loft-like space. Some
of the mortgage. If the rate is fixed, the amount
of the attributes of loft space may include high
for each payment period will be identical and will
ceilings, open space, raw space, large windows,
be comprised of two components, principle and
etc.
interest.
Lot
Oblique Views
Each New York City parcel of land is divided into
This term is used to describe views from an
lots for purpose of identification.
apartment when one has a rather ‘turn of your
Luxury Doorman
head’ view of Central Park or either of the two
Twenty to forty or more floors, and a twenty-
rivers.
four hour doorman. These tend to be postwar
Offer Accepted
buildings. The more luxurious buildings also have a
This term describes one of chain of events in the
concierge who provides services such as receiving
purchase of an apartment. This refers to the point
laundry and packages. Some of these buildings
in time when an owner accepts the business terms
have a health club and/or swimming pool and a
of an offer for an apartment. This can include the
parking garage.
price, the closing period, and any contingencies
Mortgage Points
the parties may agree upon.
Often when a consumer takes out a mortgage, the
One-bedroom
lender will tack on points to the mortgage amount
A one-bedroom is a three-room apartment
as an upfront cost of doing business. In other
(kitchen, living room, and bedroom). A one-
words, if the lending institution offers a mortgage
bedroom with a windowed alcove large enough
rate at 2 points, you will be paying 2% of the
to be a bedroom is called a “junior 4” (4 rooms),
total mortgage upfront as an added cost of doing
“flex 2” or “convertible 2” (convertible to two
business.
bedrooms).
Mortgage
Open House
In order to purchase a property, an individual
In order to promote a property, the listing broker or
often will enter into an agreement with a lending
the owner of the property may hold an open house 15
in order to get a large number of people and/or
has a career that requires them to be in New York
brokers through the property in a short period of
several days per month, or even per week. The
time. Often you will see Open Houses advertised
pied-à-terre allows its owner to avoid the daily
in the Sunday New York Times Real Estate Section.
commute, or to spend occasional late nights in
Open Kitchen
the city. However, these apartments can also be
A kitchen which opens up to the living space of an
kept by the well-heeled who simply enjoy having
apartment. There is no door separating the kitchen
access to the exciting culture and glamorous
from the rest of the apartment. These types of
society found in major cities.
kitchens are most often found in loft spaces.
Possession
Original Detail
This term refers to the time (month and day) that a
This term is used to describe detailing in pre-war
new purchaser or a new tenant can actually take
buildings. This can include ceiling moldings, chair
possession of an apartment.
rails, ornamental decorations around doors or
Post-War
fireplaces, etc.
Refers to buildings built after World War II.
Parlor Floor
Post-war building needs and modern building
This is the second floor in a townhouse. In its
techniques dramatically altered the composition
original form, the building’s front steps accessed
of the middle and upper-class apartment house.
the parlor floor. The parlor is traditionally the
Apartment houses were built in a “plain vanilla”
grandest floor in the townhouse and almost always
style with lower ceilings, fewer moldings and
has the building’s highest ceilings. Historically,
details, an absence of fireplaces and reduced
these floors were primarily used for entertaining
room proportions. The exterior of the New York
with two rooms separated by a staircase. These
apartment house also saw dramatic change. Plain
rooms were usually Living Rooms, Libraries or
red and white brick exteriors replaced the ornate
Formal Dining Rooms.
limestone detailing of the pre-war apartment house.
Partial Views
Powder Room
This term refers to views that offer partial vistas of
Refers to a bathroom with no bath or shower. A
Central Park, the Hudson River or the East River.
powder room is also commonly referred to as half-
Pass-through Kitchen
bath.
This term refers to a Kitchen with an opening from
Pre-War
the Kitchen into another room in the apartment,
Refers to buildings built prior to the start of World
usually a Dining Area or Living Room.
War II. Some common elements of these structures
Pied-à-terre
include hardwood floors, moldings, high ceilings
Translated literally from the French, pied-à-terre
and fireplaces.
means foot on the ground. In English, we would
Professional Space
call it a “landing pad.” A pied-à-terre is a small, comfortable apartment maintained by someone
Office space set aside in a residential building for
who resides in another city. Usually, the owner
use by professionals usually in the medical field.
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Professional space does not refer to attorneys
deposit is not in lieu of a tenant paying his/her last
or architects. The strict interpretation is for the
month’s rent.
medical profession. Similar to maisonette’s these
Service Entrance
spaces can have separate street entrances as well
This term refers to a second entrance to a kitchen
as lobby entrances.
from the common hallway or a rear or private
Pullman Kitchen
smaller hallway. This entrance is basically used
This type of kitchen is most often found in small
for deliveries and as a means of egress for the
apartments and is situated against a single wall.
servants of the house.
Usually these kitchens are no bigger than the size
Shortfall
of a closet and consist of a refrigerator (full or half),
A situation in which a building owner is unable
an oven and a sink. This type of kitchen does not
to meet the operating expenses of a building
count as a room when counting apartment rooms.
because the building’s income is less than the
Many of these kitchens are found in pre-war
building’s expenses.
buildings that were originally constructed as hotels.
Studio
Quadruplex
A studio is a two-room apartment (the kitchen
An apartment that is spread out over four levels.
is considered one room). An “alcove studio” is
Recessed Lighting
a studio with an alcove for dining or sleeping. A
This term refers to lighting that is located above
studio with a windowed alcove large enough to
the ceiling and does not have a light fixture
be a bedroom can be referred to as a “junior one-
hanging from the ceilings. This type of lighting
bedroom” or “junior 3” (three rooms).
provides a very clean and contemporary look to an
Tax Abatement
apartment.
The city of New York often offers developers
Room Count
tax breaks in the form of abatements in order to
Every apartment has a room count. Straight Studio,
induce development in a particular area of the
pullman Kitchen: One room. Straight Studio, Full
city. Most recently the wave of development in
Kitchen: Two rooms. Alcove Studio, Full Kitchen:
the downtown area has been spurred on by tax
2.5 Rooms. Junior-One, Full Kitchen, No Wall: 2.5
incentives offered by the city for the conversion of
Rooms. Junior-One, Full Kitchen, Wall: 3.0 Rooms.
commercial space to residential housing.
One Bedroom, Living Room, Kitchen: 3 Rooms.
Term
Junior-Four, Living Rooms, Kitchen, Dining Alcove:
Each rental lease is for a duration of time. This
3.5 Rooms. Convertible-2, Living Rooms, Kitchen,
period of time is called the term and will range
Dining Alcove, No Wall: 3.5 Rooms.
from one month to two or three years. Typically an
Security Deposit
unfurnished apartment will rent for a term of 12-24
A rental tenant will put down a security deposit on
months.
an apartment so that the owner of the apartment
Terrace
has security against any potential damages in the
By definition, a terrace is a roof or part of a roof
apartment during the term of tenancy. This security
in a building. In Manhattan, terraces can be found
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when there is a setback on a high-rise. These
and used for entertaining. Visitors entered the
terraces are also enjoyed for the private use of
townhouse via the steps leading to this floor.
an individual apartment owner. We categorize a
Triple-Mint
terrace as outdoor space. A terrace and balcony
This term refers to the condition of an apartment. In
are often confused and the terms are used
this case the ‘triple’ refers to the general condition
interchangeably.
of the apartment, the condition of the kitchen and
Townhouse
the condition of the bathroom.
This type of structure was pre-eminent in the
Triplex Apartment
1840s and up through the 1930s. Townhouses
An apartment that is spread out over three levels.
were primarily built as private residences for its
Two-bedroom
occupants with one family owning and occupying
A two-bedroom can be a four, five or six-room
the entire structure. These structures were usually
apartment. A “flex 3” or “convertible 3” is a two-
built in groups and were commonly referred to as
bedroom apartment with space for an additional
row houses. They were built four to five stories
room (third bedroom, dining room, den, maid’s
high and enjoyed many common design elements.
room, etc.).
Typically, the houses were built with an English
Walk-through Kitchen
basement level (slightly below street grade) which
A Kitchen with two means of egress. An individual
housed the kitchen at the front of the building
can actually walk through the Kitchen by entering
underneath the building stoop (or stairs) and was entered via a service entrance. At the rear of the
through one room and exiting into another room.
first level was usually a Dining Room leading to
Walk-up Building
the private garden. The second level, commonly
A building without an elevator. This term usually
referred to as the Parlor Floor was the garden floor
refers to four to six story pre-war buildings.
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