A NEW DAY FOR CO-OP AND CONDOMINIUM CLOSINGS

There is little doubt that buying a new home is one of life’s great joys yet it can be stressful and complicated. These facts are particularly true in New York City where a major form of home ownership includes shares in a cooperative. Purchasing a condominium in New York City can be less complicated since there is an actual transfer of title, similar to the process and ownership of a single-family home.

Diana Diaz, Esq. Director and Counsel, Transfer Department

Argo Real Estate LLC

50 West 17th St. #7

New York, NY 10011

(212)896-8600

The cooperative residence purchase and closing process has presented many challenges. Today, these challenges are faced using modern communications and the willingness of all involved to adopt new procedures.

Fortunately, the closing has become easier. Prior to COVID-19, it was common for all parties to meet in the offices of the building’s managing agent and begin an hours-long process of exchanging, signing and executing documents, having a notary present and going through a mandatory checklist of items.

Certain circumstances could make the process easier. Although an all-cash deal can facilitate a closing, certain steps and document requirements remain essential.

1. Ensure all expenses and obligations are agreed to in writing by both the buyer and the seller. In New York City, having competent, experienced co-op attorneys representing both parties is a must.

2. The building’s managing agent should inform every party involved of any and all requirements for that building.

3. Documents such as the stock certificate and proprietary lease must be on hand and ready with the names of the parties that will execute the documents.

4. With a virtual closing, a power of attorney should be executed in advance.

5. Checks must be certified.

6. Every closing may be a bit different with respect to payments. It is essential for both parties to engage experienced coop attorneys. An experienced managing agent for the co-op corporation always facilitates a smooth closing for all parties.

A critical role of the closing department of the co-op’s managing agent is to make sure that all details and requirements of the transaction are laid out well in advance.

Pandemic-based Protocols and Evolution

Despite the 2020 shutdown, co-ops and condominium residences in the city continued to sell. For the safety of all the involved parties, we quickly pivoted to conform to necessary restrictions, while completing the transactions. Many of the closings that year were conducted outdoors, including in parking lots with contracts signed and notarized atop cars!

Early on, our firm developed the “Remote Closing Portal,” providing an innovative solution by shifting to a virtual process. This service leverages technology with respect to document printing, execution and delivery.

As cumbersome as the buying and selling process is, the introduction of virtual closings makes it more professional, less stressful and more likely to be executed in a timely fashion.