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My new year's gift from my landlord was a "Red Herring" plan for condo conversion. The prices look reasonable to me (and if it appraises at what he has the "regular" - i.e. non-insider - price at, I walk in with 20% equity) but obviously I've never even had to consider anything like this before.
Where do I go about finding an attorney to review this?
Gee, is that typical?
I would think that 20% is not enough and hold out for more.
Now is the time to start talking with your fellow tenants.
Remember also, that buying and selling a condo both have costs involved, so that paper 20% may look a lot more like 10% once the dust has settled. If the LANDORD is giving you the outsider quote, approach the figure with garlic, holy water, and a crucifix.
Presuming the landlord gets 15% for a non-eviction plan, banks are VERY leary of lending to outsiders coming into a building that is not majority owner occupied and THEN some...probalby even worse now than in the past. This reluctance to lend means a decrease in the value of your condo.
Remember also, landlords hide the roof that needs to be replaced next year, the boiler on its last legs, and the elevators that need replacement LAST year and the 85% of the rent stabilized tenants that you will spend decades subsidizing. You need more than 20% to cover these real possibilities.
jds,
You are on the right track looking for a good lawyer...perhaps several of you can pool together on one and save some money? Alas, all the lawyers I've ever dealt with have sucked mightily so I cannot recommend anyone. Don't be too quick to take the leap...better to be the LAST holdout than the first wide eyed optimist.
And then finally, if you are NOT going to move, then you must compare costs of current rental vs. ALL the costs associated with condo ownership. These will likely be higher for ownership, perhaps FAR higher. So my guess is that you would plan a flip.
Good Luck...keep us posted.
Last edited by Kefir King; 01-01-2012 at 03:57 PM..
Call the NY County bar association, explain your needs, and they will reccommend an appropriately experienced attorney.
Btw, I hope you realize, you do not have to purchase. If you are a rent stabiliized/controlled tenant you can remain as a tenant.
Purchasing at the 'insider price' is often a good deal, but you MUST do your due diligence.
Overall, Keifer King's advice is sound. Working together with the other tenants is good in order to share certain expenses, though your attorney and closing fees will be separate.
The main thing is to have an attorney/professional to review the conversion and offering plan, and especially to review the condition of the building AND the proposed Condo's financials. This due diligence is costly as an individual, but must be done in order to make a sound decision whether to purchase and/or to make a counter offer.
As a group, tenants can have greater negotiating leverage than individually.
You need to find a very experienced attorney, not your cousin Bob with the basement law office.
Luck!
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