New York Insider Tips – February 2017
Principal broker Ian Katz discusses subletting to diplomats, loft buildings and CEMAs.
Purchasing a condo or townhouse comes with sizable closing costs, but you can minimize them. Ask your bank if you are eligble for a purchase CEMA, or mortgage assignment, and bypass recording taxes of 1.8% of your loan amount.
At NYC closings, seller and purchaser adjust for the month’s expenses, depending on whom has paid them. Customs guide how they are apportioned. For example, all interest, rent, taxes, sewer rents and insurance premiums are made as of the day before the closing.
Take care when subletting your condo to a foreign diplomat. If they haven’t waived their immunity, they cannot be sued for delinquent rent and more, and some condo boards won’t approve.
Due to zoning laws, most SoHo loft buildings require owners have Artist in Residence permits. You can still purchase without one by signing a waiver that you are accept the risk of being pursued by the city. This waiver is called a “SoHo letter”.
Some co-op boards only permit renovations during certain months. At these buildings, this period often aligns with the Memorial Day to Labor Day stretch, when many owners are at second homes.