Can Title and Lien Searches Be Done After NYC Coop Board Approval?

Question from A, Can Title and Lien Searches Be Done After NYC Coop Board Approval?

Answer from AI:

When buying a co-op apartment in New York City, the process involves several steps, including title and lien searches, inspections, and board approval. Here’s a structured overview of the typical process and considerations:

Typical Process and Considerations

1. Title and Lien Search:

   • Purpose: Ensures the seller has clear ownership and there are no hidden liens or issues.
   • Timing: Typically conducted before the board approval process to avoid post-approval complications.
   • Flexibility: While usually done before, the timing can sometimes be negotiated, especially if the seller is willing to bear the cost post-approval.

2. Inspections:

   • Types: Include engineering and environmental inspections to assess the apartment’s condition.
   • Timing: Generally conducted before the board application to inform the buyer’s decision and negotiations.
   • Implications: Results might influence the buyer’s decision to proceed or negotiate terms.

3. Board Approval:

   • Process: Involves financial and background checks, possibly an interview.
   • Dependency: Typically does not depend on title search results, but clear title may be required for final approval.
   • Considerations: The board may need assurance of a clear title as part of their evaluation.

4. Contract Negotiations:

   • Purchase Agreement: May outline the order of steps, but it’s uncommon to specify post-approval searches.
   • Negotiations: Buyers and sellers might negotiate the timing and cost distribution of searches.

5. Liability and Safety:

   • Buyer Protection: Conducting searches pre-approval protects the buyer from post-approval issues.
   • Seller Assurance: Sellers might prefer knowing the buyer is approved before incurring search costs.

Conclusion

While the standard practice is to conduct title searches and inspections before board approval, flexibility exists based on negotiations. However, doing them earlier is advisable to protect the buyer. Consulting a real estate attorney is crucial for tailored advice and to navigate the process effectively.