DL Partners boasts a renowned cooperative corporation (“co-op”) and condominium (“condo”) Offering Plan practice that provides sound legal advice, in drafting and preparation of, in connection with offering plans and Offering Plan exemption and No-Action Letter and applications, tax map filings, and all related legal services. Our Offering Plan and No-Action Letter application practice assists investors and developers in both ground-up new construction developments and conversions of existing properties to cooperative and condominium regimes, whether residential units, commercial units, community facility or a mixture of several unit types
An Offering Plan for a co-op or condo is akin to a prospectus for an initial offering of securities. These plans are meticulously prepared documents, spanning several hundred pages, comparable in size to a university textbook. They serve as a comprehensive guide, detailing every material aspect of the property in question. Each Offering Plan undergoes a thorough review by the Real Estate Finance Bureau of the New York State Department of Law for compliance with the Condominium Act of the State of New York and the regulations promulgated therefrom by the New York State Attorney General. Until the Attorney General’s office completes its review and the Offering Plan is “accepted for filing”, no offering, advertising, sale, or promotion of the apartments or units in the property, can take place.
For condo and co–op sponsors and buyers from said sponsor, an Offering Plan is a crucial disclosure document that outlines all of the material terms under which a sponsor, the property owner, can sell you a condo unit or co-op apartment. It encompasses detailed information about the building, the properties being offered, sold, and legally mandated disclosures that protect both the sponsor and the buyer.
It is essential to understand that the New York State Attorney General’s office, specifically the Real Estate Finance Bureau, must “accept the Offering Plan for filing” before any sales can proceed. The Attorney General acts as New York State’s legal representative in this process. If a sponsor deviates from or is conducting sales activity that is not consistent with the terms of the filed Offering Plan when selling a condo unit, the Attorney General’s office maintains oversight, and any such deviations, inconsistencies or complaints may result in legal consequences to the violator.
It is important for the initial purchaser from the sponsor to thoroughly review the Offering Plan because it discloses important information about the building, the properties being sold, and legally mandated disclosures that protect both the sponsor and buyer. . The Offering Plan typically involves two main parts. The first part (part I) focuses on the features of the property, explaining the selling and buying process, transaction details, down payments, closing procedures, tax responsibilities, and various estimated closing costs. This section also addresses the developer’s or sponsor’s responsibilities and any potential warranties for repairs and defects after unit sales.
The second part (part II) of the Offering Plan consists of forms and exhibits, such as the form purchase agreement and exhibits of the condominium declaration, and by-laws. These exhibits serve as governing documents for the condominium, outlining how the condominium will be operated in the future. Additionally, you will also find building and unit floor plans and an architect’s description and specifications reports detailing the building’s components.
There are a variety of reasons why a developer or owner of a property may want to in an expeditious manner divide it into separate condominium units, whether as part of a joint venture, for the ability to individually finance different portions of their property, or for real estate tax considerations. Because the parties involved in these transactions are often experienced real estate development professionals and/or related parties, referred to as Declarants, they may generally submit No-Action Letter Applications in lieu of full offering plans, because they are not offering the sale of any new units to the public at large and based upon the Attorney General’s review of the submission the public does not need to be protected from the contemplated application.
Our team of attorneys at DL Partners are well-versed in the preparation, consultation, drafting and submission of Offering Plans, No-Action Letter Applications, and the related amendments and required submission documents to be submitted before the New York State Department of Law, for review by the Real Estate Finance Bureau, in compliance with all applicable acts, laws and regulations. Our team of attorneys work closely with the owners of these projects, as well as their architects, consultants, expeditors, brokers, managing agents and other professions, in the preparation of the condominium declaration, by-laws, common charge budgets and all related and required documents, including the tax lot subdivision filing submissions to and approvals from the New York City Department of Finance.
Whether you are a developer or sponsor, buyer or seller, DL Partners is here to provide you with exceptional legal support needed throughout the Offering Plan acceptance for filing process. Our experienced team of attorneys is dedicated to assisting you in navigating the intricacies of Offering Plans process, protecting your interests, and ensuring a smooth and successful transaction.
Furthermore, using our extensive background in the preparation and filing of Offering Plans, our attorneys at DL Partners can provide the crucial guidance you need during your sale or purchase of an individual cooperative apartment or condominium unit. Contact us today to benefit from our decades of experience and secure the guidance you need. We are committed to serving your legal needs and providing peace of mind as you navigate the world of Offering Plans and cooperative apartment and condominium unit ownership in the City and State of New York.