Boards rely on co-op and condominium financial agreements when managing their properties. All financial agreements must comply with local, state, and federal regulations. Failure to properly address issues in financial agreements can result in significant liability for co-op and condominium boards, including lawsuits by tenants and third parties.
Contact a Co-Op and Condominium Financial Agreement Attorney
New York City cooperative and condominium boards have unique legal requirements that necessitate guidance from an experienced attorney. The commercial real estate attorneys at Woods Lonergan have decades of experience representing co-op and condominium boards in several important legal issues, including financial agreements. We’re prepared to handle all of your legal needs, from drafting routine financial agreements to complex litigation documents.
Loan Agreements and Commitment Letters
The attorneys at Woods Lonergan represent condominium boards and potential owners in all aspects of the buying and selling process, including financing. Banks have a track record of loan commitment letters issued after applying to purchase a condo or co-op. The loan commitment letters frequently include significant conditions the borrower must satisfy to obtain the loan.
Many commitment letters are issued subject to a satisfactory appraisal of the unit. As a result, it can be difficult for condo and co-op board members and potential unit owners to move smoothly through the purchase process. At Woods Lonergan, we represent individuals seeking to finance the purchase of a condominium or co-op property. We also represent boards of condos and co-ops that are refinancing the building mortgage or are working with unit owners on their refinances.
Co-op and Condominium Financial Agreements
As condominiums and co-ops grow and expand, they may require financing to meet their needs. Condominium associations and co-op boards can borrow funds to finance development projects. However, there are significant state and local laws regarding how condos and co-ops can raise money for future projects. The attorneys at Woods Lonergan can help boards locate a financing source and submit a thorough application. We can also help navigate the process of obtaining funding.
Closing and Refinancing Financial Documents
When the seller of a condo unit and the third-party buyer need documents to facilitate the closing, they often require a tight timeframe. Meeting these deadlines can be difficult for board members. Our attorneys help board members handle complicated and challenging transactions so board members can focus on managing the association. When condominium and co-op boards work with us, they can feel comfortable knowing that we are handling the request for financial documents in an effective way. Some of the documents related to financial agreements we can manage include the following:
- 22.1 questionnaire
- Lender questionnaire
- Paid assessment letters
- Association governing documents
- Association financial documents
- Financial documents such as budgets and unit ledgers
- Miscellaneous documents, such as the association’s insurance policy and meeting minutes
Financial Agreements & Contracts with Third-Party Vendors
Condominium and co-op board members have significant responsibilities, including ensuring they work with high-quality third-party service vendors at a reasonable price. When selecting third-party vendors,board members need to find vendors who are licensed, qualified, and insured. The board should always enter into a written contract with third-party vendors to protect themselves and their interests.
The board has a fiduciary duty to the members of the association or co-op. When boards fail to hire third-party vendors in a way that is in the members’ best interest, they can be held liable for any damages. Working with the lowest-price vendor may not be the best option. After the co-op or condominium board has selected a vendor, they will need to draft a contract. The contract is a type of financial agreement between the board and the vendor and should include the following terms:
- Concise timeline for the work
- The scope of the work
- How the work should be performed
- How payments will be made
- What will happen if either party defaults on its obligations
Co-op and condominium boards frequently use boilerplate contracts, or they will use a contract multiple times for different vendors. Doing so can put the co-op or condominium at risk. The attorneys at Woods Lonergan provide financial agreement drafting services to help condo and co-op boards create contracts that protect their rights. We will negotiate the best terms possible for your contract with third-party vendors.
After the terms have been agreed upon, we will draft a legally binding contract tailored to the financial agreement. Our attorneys are also prepared to represent you should a dispute arise regarding the financial agreement between your board and a third-party vendor.
Financial agreements for Co-op and Condominium Developers
Developing a new condominium or co-op can be a confusing and complex process involving many areas of law, including land use, contracts, and financing. Recently, many developers have been converting existing residential or commercial real estate into condominiums or cooperative agreements. Obtaining financing for these development projects can be rife with potential legal pitfalls.
The attorneys at Woods Lonergan have extensive experience working with developers of all sizes and types of condominium developments, from small residential projects to large commercial projects with hundreds of individual units. We will provide you with timely and effective legal counsel regarding the financing of your project. When you work with Woods Lonergan, you can rest assured that we will stay focused on the goal of making your project profitable by drafting and negotiating financial agreements that protect your interests and benefit your bottom line.
Reach Out to an Experienced NYC Real Estate Attorney
Woods Lonergan is an industry leader in cooperative and condominium law. We act as general counsel to cooperative and condominium boards, ensuring that their financial agreements are legally enforceable and protect their best interests. Whether you’re in need of general counsel or you have a specific issue related to a co-op or condominium financial agreement, we are here to help. Contact Woods Lonergan today to schedule your initial consultation and learn more about our legal services.