VERBAL ACCEPTANCE OF OFFER FROM SELLER
PREPARE DEAL SHEET
Seller’s broker will (in most cases) put together “deal sheet” and submit to both sets of attorneys. It contains: a) purchase price of apartment b) social security numbers for all parties on contract c) address d) amount of financing e) attorney’s names and addresses f) what stays with apartment g) closing date h) any other provisions.
DISCUSS FINANCING
If you are financing, you should discuss the length of time you need to get the bank commitment with you attorney. Usually this contingency clause in the contract calls for no more than 30 days. Your bank or your mortgage broker can give you an idea of how much time you need. The bank will also set up an appointment to have application approved.
START DUE DILLIGENCE
Your Attorney will do due diligence on building including a) obtaining offering plan (many times not available) b) obtaining 2 years financials c) Having lead paint affidavit signed by seller d) Reading the corporation’s minutes (many times not allowed )
PREPARE CONTRACT OF SALE
The seller’s attorney will prepare a contract for your attorney’s review. You sign and give a deposit of ten (10%) percent of the purchase price to be held in the seller’s attorneys escrow account until closing. The seller then signs the contract, and sends back to the buyer’s attorney, fully executed.
ASSEMBLE FINANCIAL INFORMATION
You should immediately begin assembling your financial information for the bank and for the Board application.
RECEIVE LOAN COMMITMENT (If Applicable)
If financing, when you receive the loan “commitment”, you must also get the Aztec Recognition Agreement from the bank. These are forms that the bank requires the corporation to sign which states the corporation recognizes the bank’s interest in the property.
PREPARE BOARD PACKAGE
The application, commonly referred to as the “board package”, usually asks for: a) net worth statement b) back up documentation for the amounts you stated on net worth c) last two years income tax returns (complete) d) 1099 for latest year if tax returns not yet complete e) letter from your employer stating length of employment and salary (plus bonus) f) several reference letters, both business and personal.
Gather together all of the information required by the corporation, and work with your broker in assembling the board package. Forms should be typed. Copies must be legible. Your broker makes the copies required by the board.
The board package (usually 10 or 11 copies) is then sent to the corporation’s managing agent. They will conduct a credit check, and review the package. The agent will return packages for additional or missing information.
SCHEDULE BOARD INTERVIEW
The managing agent then sends the board package to the members of the board of the corporation. After reviewing, they will give you a date for a personal interview.
After the interview, you wait for the approval from the managing agent.
SCHEDULE CLOSING
After your approval, the attorney will schedule the closing date.
Prior to closing, you will conduct a “walk through” of the apartment to make sure all the terms of the sale are met, i.e.; appliances work, no holes in walls, items agreed to are left in apartment. Your broker will accompany you for the inspection.
ATTEND CLOSING
Bring photo ID and additional checks. Ask attorney which checks should be certified or “bank” checks. The closing usually takes between 1 to 2 hours.