When our clients offer on a property needing renovation, we advise them to review the alteration agreement with their attorney prior to signing.
The alteration agreement is a contract with a co-op or condo that outlines your responsibilities to your board and fellow owners while you do work.
This agreement has implications on project timing, expenses, and expectations, so an attorney review is smart when the deal gets real.
What will you see in this agreement?
1) The types of work that fall under it. Generally, this includes work implicating structure, rough plumbing and gas lines, HVAC, wet room reno, removal of walls and additions, and more.
2) The guidelines and restrictions for your project, including eligible months of the year, times of day, time limit for demolition, use public areas, access to electrical conduits and risers, and more.
3) Documentation requirements, including official stamped architectural plans and scope of work. This will be shared with the board’s engineer who can request changes.
4) Required approval of all contractors and subs, including contract copies, proof of insurances and bonding.
5) Your obligations to obtain permits and final sign-offs from the DOB and regulatory bodies, including C-of-O, facade changes, plumbing sign-offs, and more.
6) Consent to allow the board to send someone independent to inspect the project at any point in time.
7) Fees and deposits required to do the work, including spec review fees, processing fees, and a damage deposit as a percentage of your project cost.
8) Specific riders guiding the regulation of asbestos, A/C installation, use of jack-hammers, floor soundproofing, wet over dry rules, washer/dryers, and more.