What Is an Offering Plan in NYC Real Estate?

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What is an Offering Plan in New York City real estate? Where do you get it and who pays for it? I'm Nick at Hauseit and in today's video we will demystify the topic of offering plans when you're buying and selling real estate in the great city of New York. If you're not already familiar with the platform, Hauseit is New York City's largest Buyer Agent Commission Rebate and For Sale by Owner company. Visit our website https://www.hauseit.com to look into ways that you can save money when buying and selling real estate.

Both buyers and sellers are often confused by the very mention of the phrase offering plan. In New York City real estate, many purchasers are unaware that specifically for new developments the buyer is responsible for paying for a copy of the offering plan. The offering plan itself is a document which contains all of the required disclosures and information about a new offering such as a condominium or a cooperative. As part of buyer due diligence on a purchase your attorney will review the offering plan as well as financials board minutes and any other items which are available for review.

In the case of a new development, reviewing the offering plan is particularly important as it outlines the key risks of the proposed transaction. To recap, if you're buying a new development be prepared to pay a few hundred dollars for the buildings offering plan once you have an accepted offer and before you sign a purchase contract if you're a seller in New York City, you will be required to furnish a copy of the offering plan as well as the building's financials and any other items in your possession pertaining to the building such as the purchase application and the sublet application.

You will likely have received a copy of the offering plan when you originally purchased your apartment so hopefully you can find that particular copy. If for some reason you cannot locate it, you would first want to ask the attorney who helped you on the purchase she or he can possibly look through and see if they have a digital copy that they can send your way. If your attorney cannot find it your next step would be to go to your building's managing agent. Keep in mind that it's very common for a building managing to charge money for a copy of the offering plan.

In some cases it could be $200, $300 or even $400. The cost of the offering plan is always borne by the seller in the case of a traditional resale. It is only in the instance you're buying a new development when the purchaser is responsible for the costs of the offering plan. One final trick if you're looking for an offering plan is to actually contact your real estate broker. There are many services available that brokers have access to whereby they can access a shared database of offering plans for buildings throughout the city.

This comes at no cost generally speaking however it does require a specific login to access the offering plan digital version only and it cannot be downloaded, it cannot be edited and certainly cannot be printed so that is another option as well. But in most cases the purchasers attorney will insist that the seller furnish a copy of the offering plan. Some attorneys will even demand a physical copy but it's increasingly okay if you provide just a PDF file and send that over to your attorney.

As a seller it's also a great idea to assemble all of this documentation well in advance of going to market. Keep in mind that the time it takes you to assemble this documentation will delay the process from the accepted offer to the signed contract and during that time nothing is binding so it is possible that if you take too long the purchaser could walk away, so you'll mitigate your risk by doing your homework looking for all of these documents including the offering plan earlier on in the process.

We hope you enjoyed this video. I'm Nick at Hauseit. Visit our website https://www.hauseit.com to learn about how to save money when buying and selling real estate in New York City. Feel free to hit subscribe as well right below or leave us a comment and we'll get back to you!

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