Who fills out the condo questionnaire during a real estate transaction in NYC? What is the point of a condo questionnaire and is there a cost associated with the form?
A condo questionnaire is typically completed by a condominium building’s managing agent for a nominal fee that ranges up to $200.
Lenders are required to conduct this questionnaire for buildings they have not already approved or previously made a loan against. Besides providing answers to basic due diligence questions, the condo questionnaire serves to qualify the building for government backed loan programs administered by entities such as Fannie Mae.
Qualifying the building for the loan programs of government sponsored entities such as Fannie Mae is extremely important for bank lenders so they can sell their loan exposure to these government sponsored enterprises.
As long as the loan is within a certain size and thus conforming to standards set by these government sponsored enterprises, it will be eligible to be sold off the bank’s balance sheet to these quasi government agencies.
As a result, the bank is able to free up capital to make fresh loans and pocket any origination fees.
Sample Condo Questionnaire for a NYC Condominium Building
Condo Questionnaire
Date:
Seller:
Buyer:
Property Address:
Managing Agent:
1. Please confirm Common Charges & Taxes for this unit.
2. Any plans to increase Common Charges? Yes, about 10%
• If yes, how much?
3. When was last increase and how much? April 2016 (depending on which unit), in order to comply with new wage regulations
4. Any current or planned assessments? NO
• If yes, how much and what for?
• What is the duration of the assessment?
5. Any planned capital improvements/renovation to the building? NO
• If there is, how will it be paid for?
6. Any problem concerning this specific Unit that managing agent is aware of? NO
7. Is there any litigation(s) or judgment(s) against the Condominium? NO
8. Any concern about bed bugs, cockroaches, insects, vermin, rodents in this specific Unit or the building? NO
9. What is the building policy for the following:
• Sublets: Allowed
• Pets: Non-dangerous pets
10. How many Amendments are there to the Offering Plan? 7
11. What is the current amount in the cash reserve? $75,250
12. What’s the owner occupancy ratio? 30 owner, 65 units sold
13. Is there a land lease (ground lease)? NO
14. Is the Sponsor present in the building? NO
• If so, is the Sponsor current in all obligations?
15. Is the Condominium in good standing as a legal condominium? YES
16. Are there any complaints against the selling owner by other residents? NO
17. Are there any disputes between the Condominium and the unit owner? NO
18. Does the conveyance of this unit include a storage unit? NO
19. Is the Board aware of any alterations to this unit that have been done without the approval of the Board? NO
20. What are the applications fees? $130 QUESTIONNAIRE, $450 CLOSING DOCUMENTS
21. Any noise complaints? NO
22. Any water issues? NO
23. Please confirm the board was turned over from the sponsor to the building owners in November 2015. YES
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Sample Letter of Completion from the Department of Buildings in NYC
Please be advised that the work related to the above application is completed and was signed off in the Building Information System (BIS) on [Date].
Because this job was professionally certified, the owner retained a registered professional engineer or registered architect, who certified that the contents of the application comply with the applicable laws, rules and regulations of the Department of Buildings.
Because this job was filed as Directive 14 of 1975, the owner retained a registered professional engineer or registered architect, who certified that he/she inspected the work approved on this application and that it complies with the applicable laws, rules and regulations of the Department of Buildings. Based on the nature of the work filed on this application a new certificate of occupancy is not required.
A Letter of Completion is an important sign off to receive as your lawyer completes his or her due diligence before you sign a purchase contract. A Letter of Completion from the Department of Buildings signals that the local government believes the building has a valid Certificate of Occupancy and thus the building is legally habitable.
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Disclosure: Hauseit® and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. No representation, guarantee or warranty of any kind is made regarding the completeness or accuracy of information provided.
