New York Insider Tips – September 2016
Many insurance policies for properties in FEMA Zone A areas have come due for renewal over the past several years. After Sandy, some condo boards had to pay higher premiums for renewed flood insurance protection, which trickled down to unit owners in the form of higher monthly common charges.
Swapping out bathroom fixtures or moving a shower or toilet location in a pre-war apartment? Review your alteration agreement first. Most historic co-ops require plumbers who expose piping during a renovation to replace water lines to risers, install new branch control valves, expansion swings, check valves, access panels, and re-rough all waste, soil and vent lines. Mind your budget.
If you are planning to purchase a new condominium from a developer in the name of an LLC or business entity, have your attorney negotiate this structure before you sign a contract. If you choose to switch ownership from your name to an LLC afterward, the developer’s attorney will charge $1,500-$2,000 for the privilege.
Buying into a new condominium includes two unique closing costs for the purchaser. First, one must pay for a proportionate share to purchase super’s live-in apartment. Second, one must make payment into to the building’s “rainy day fund” called a working capital contribution – amounting to a few months common charges.
The most popular new condo type in Manhattan since 2013 has been the contemporary reinterpretation of the pre-war building. These buildings, like Brodsky’s 135 East 79th, resemble grand pre-war designs inside and out, with huge floor-plans, formal entertaining rooms, and limestone facades, but were built new from the ground-up.