5 important factors you need to check before buying an apartment in NYC
Purchasing an apartment in NYC is a dream for many New Yorkers and anyone who is in love with this city. However, buying an apartment requires careful knowledge, deep background research, and thoughtful consideration, especially in large residential complexes with numerous units.
Important legal factors you need to check before buying an apartment in NYC
The first step is determining whether the apartment is a co-op or a condo. Beyond ownership and pricing, these two types have different tax classifications, which can have a substantial financial impact in the long run.
When you decide to buy an apartment, you’ll typically work with the seller’s agent and hire a lawyer to ensure that the closing process and transactions are conducted legally and comply with regulations.
Another critical thing you need to verify is the New York City Department of Buildings (DOB). You must confirm that the property obtained all relevant rules and regulations.
I’ve encountered many real estate brokers and lawyers who may not have sufficient information to effectively guide you through this process. In such cases, it’s wise to consider hiring an architect or a code/zoning expert to help navigate the complexities of your purchase.
Certificate of Occupancy (CO) Vs Temporary Certificate of Occupancy (TCO)
One of the important things to consider when assessing a building is the Certificate of Occupancy (CO) or Temporary Certificate of Occupancy (TCO).
Sometimes, you may not see any CO or TCO and need to check the HPD records, such as the I-Card.
The Certificate of Occupancy is an official document issued by the NYC Department of Buildings (DOB) that indicates the legal use of a building, including details such as the number of floors, units, occupancy, and …
On the other hand, a Temporary Certificate of Occupancy (TCO), as the name shows, is a provisional document with an expiration date. This means the building management must renew the TCO regularly to maintain legal status, especially for insurance purposes.
Be sure to check out our other blog post to gain a deeper understanding of the Certificate of Occupancy and how to verify its status.
DOB, ECB, Landmarks, and Fire Department Violations
Before purchasing a building or unit, it’s crucial to determine whether there are any significant violations issued by the Department of Buildings (DOB), the Environmental Control Board (ECB), or other agencies. If the property has any violations, it’s important to understand what they are about, the associated penalties, and how to repair and fix them.
Some violations may simply require payment of a penalty fee, while others could necessitate repairs, submission of a Certificate of Correction, and attendance at a hearing to discuss the situation and the steps taken to resolve it. In such cases, it’s advisable to hire an architect or a DOB expert to assist you in navigating these issues effectively.
Find out Open DOB Applications When Buying an Apartment
In older prewar or postwar buildings, it’s common to find open Department of Buildings (DOB) applications, often from previous owners. These applications may cover minor work like partition changes or plumbing adjustments.
When a permit was issued for the work, it was never fully completed or signed off, leaving the application open. This can become a tricky situation to navigate, especially if you’re in the process of buying an apartment.
Some open applications are straightforward and can be closed out without much hassle. In these cases, you may need to renew the permit or hire an architect, contractor, or plumber to finish the job and sign off the application. However, it has costs, and you need to cover all the fees.
For more complicated cases, the work may need to be updated to comply with the latest building codes. This means a job originally done years ago must be brought up to current standards, which could involve a full redesign or additional permitting.
Typically, any open applications at the time of purchase are the responsibility of the current owner, who should ideally address these issues or offer compensation through a price adjustment. Be sure to discuss open applications with the seller and your attorney to clarify who will handle any required work or associated costs.
What You Need to Know about Combined Apartments
If you’re considering buying an apartment, especially in an older building, you might be facing the possibility of combining units to create a more spacious home.
Combinations can happen vertically and horizontally, which means the units must be on top or besides each other to be able to obtain the required permits.
Before you sign a purchase contract, it’s essential to confirm that any previous combinations were done correctly and legally. This means checking for the right permits and ensuring they were signed off, meaning the work passed final inspections by the
necessary authorities, such as the NYC Department of Buildings (DOB), Department of Environmental Protection (DEP), Fire Department (FDNY), and Landmarks Preservation Commission (LPC), among others.
To start, ask the seller for official documentation that proves all work was properly approved. If they don’t have these documents or if the property has a complicated history, it’s wise to bring in a DOB expert who can conduct this research on your behalf.
In some cases, especially with older buildings or when combinations occurred under previous owners, the building management might have valuable information about past renovations. To check for clues, look for multiple entrance doors, electric panels, or utility meters in the unit, as these can indicate a prior combination of spaces.
It’s also worth noting that some jobs filed years ago may list combined units but were not explicitly permitted for the work involved in combining or legalizing those spaces.
If you want to buy a property in NYC, HN REPUBLIC is here to assist you and your attorney in conducting a thorough background check, helping you proceed with confidence and peace of mind.
Steps to Take When You Discover a Combined Apartment
If you come across a combined apartment, the first thing to do is review the records to determine whether the combination was done with the necessary permits. If permits were obtained, check if the application is still open or if it has been fully signed off (closed).
The filing process for combining apartments is a little bit different between co-ops and condos. In a co-op, the apartment owner or owners technically don’t own the actual property, and they are shareholders; there’s no need to file for a tax lot combination with the Department of Finance (DOF). However, if the property is a condo, you’ll need to confirm that the combined unit has been recorded with the DOF for tax and ownership purposes per NYC DOB Code.
Taking these steps will ensure you have all the necessary information about the legality and tax status of the combined apartment.
What to Do When You Discover an Unpermitted Apartment Combination
If you find that an apartment combination was done without the proper permits, it’s up to the current owner or seller to legalize the work. This includes making any modifications necessary to comply with the Building Code, Zoning Resolution, and safety standards if anything is out of compliance.
Legalizing the combination typically involves filing with the Department of Buildings (DOB)
The filing process can be straightforward if there are no significant Code and Zoning issues; it will require the owner to cover various expenses, including civil penalties, filing fees, and costs for construction and architectural services. Ensuring this work is completed is essential for bringing the apartment up to code and securing a safe, legal living space.
