Due Diligence Service
In a typical residential transaction in NYC, due diligence is conducted by Purchaser’s attorney after an offer is accepted and before a contract is signed.
What if you had game-changing information to share with clients while the offer is still being negotiated and before attorney involvement?
Are you pitching an exclusive and need information on a unit and building to make your presentation stand out?
Perhaps you have a Purchaser that is interested in making an offer on an apartment but would like to know more before moving forward.
Additional information on the building will educate the client and add value to your seamless service.
Due Diligence – Customized for Your Deal & Concerns
- Obtain a “lay of the land” with an apartment or house. For example, you will learn when Seller purchased, if there is a mortgage, confirm real estate taxes, and any open liens or violations on the unit that will need to be closed out prior to Closing;
- Find a Diamond in the Rough: Discover if there is an opportunity for you to suggest a game-changing business term such as a purchase CEMA/assignment that could benefit both parties in the transaction;
- Discover material issues early in the process so they can be cured without delaying the closing, such as open work permits or violations.
A snap-shot of our services:
Closing Cost Estimate: Let us help make you look great! We prepare a deal-specific estimate based on the purchase price and loan amount (if applicable). Providing a custom closing cost estimate will help eliminate uncertainty and reduce your liability for potential errors if CPL drafts the estimate. Certain price points and transaction types will trigger taxation at an increased rate and CPL has the experience to identify these situations.
Online Records Search: We complete a review of material online city records including:
Estate Taxes Impact on Family Businesses and Heirs
- ACRIS: history of conveyances, deeds & transfer reporting, mortgages (houses/condos), UCCs (co-op), or other liens recorded against the property;
- Department of Buildings (DOB): Certificate of Occupancy, violations, open/signed off permits, complaints;
- Department of Finance (DOF): real estate taxes and abatements;
- Housing Preservation & Development (HPD): violations and owner registration;
- Attorney General Real Estate Finance Bureau: number of amendments to the Offering Plan.
Managing Agent: While it’s hard to obtain information in a timely manner from a managing agent before we are retained as counsel, we can reach out with questions and look through our completed deal notes to see if we recently obtained due diligence information in the same building. *
Documents collected may include: Purchase and Sublet applications, House Rules and Building Policies, Attorney Questionnaire (original to Chaves Perlowitz Luftig), Financial Statements, Budget, and Board Minutes.
*If CPL does not have this information, we will need to rely on the managing agent to provide it. Please note that there may be delays and/or fees charged by the managing agent.
IF YOU WOULD LIKE TO UTILIZE THIS SERVICE, PLEASE EMAIL AL@CPLLAWFIRM.COM
All content provided is intended for general information only, and should not be construed as legal advice, tax advice, or financial advice applicable to you or your clients. No attorney-client relationship is created unless and until a binding written retainer letter is signed by both you or your client and CPL. Before taking any action based on any materials or content provided, you should consider your personal situation and seek professional legal advice.