LEGAL/FINANCIAL

Apartment hunting in New York requires a methodical touch. You want to get a feel for what's out there, but you want, and need, to move fast. In a city as crowded as this, someone else can snap up the unit of your dreams from right under you. How can you stop that from happening? After all, you don't want to take the first apartment you see, right? Or do you? If you like it enough, then why not? An increasing number of co-op and condo buyers are seizing the day and buying the first apartments they see, according to The Daily News, in so-called "one-and-done" deals. "It’s the real estate equivalent of marrying the first guy you meet in a bar," says the report, adding, "Call them impulsive or foolhardy, but as inventory hovers at record lows, these devil-may-care purchasers are beating their rivals to the punch — and reaping the rewards." Fair enough. Before you seal the deal in ink, however, the article does caution potential buyers to do their research first: "A tall finance executive [fell hard for a] loft on the Upper West Side a few years ago [and] didn’t bother to explore the upstairs landing. When he came back to walk through the apartment before the closing, he discovered that the ceiling was so low that he couldn’t stand up straight. It was too late to back out of the deal." And that's got to suck. 

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Do you live in a relatively new co-op or condo? Does it have a 13th floor? Chances are, the answer is no. According to The Wall Street Journal, although most people don't buy into the idea of unlucky 13, "less than 5 percent of residential condo buildings in Manhattan and Brooklyn have a designated 13th floor." It might be a case of being better safe than sorry. That is, what if a broker is showing an apartment to a potential buyer in a building with a 13th floor? Well, if that potential buying is superstitious, then floor 13 will have caused the broker a sale. So who makes the call? WSJ explains that "the decision to omit the 13th floor occurs well before ground is broken. Both developers and marketers discuss floor layouts in initial planning meetings, but the developer has the final say. Then, if the 13th floor is omitted, developers work off two sets of plans — technical plans that show a 13th floor and marketing plans that don't." Who knew? But don't feel bad for poor old 13 — it's not the loneliest number anymore. WSJ reports that some developers are dropping the fourth floor because the number four is considered unlucky in Chinese culture. 

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Once upon a time there was a bakery at 331-333 Kent Avenue. When artist Cosimo Cavallaro bought the building, he had big plans for it. Brownstoner reports that, in 2004, Cavallaro wanted to convert the once bakery-then artist loft into an 11-story luxury condo called Punctilio. It was not to be, however. In 2012, the spacious building near the Williamsburg Bridge sold for $5,000,000. All we know about the new owner is that it's an LLC. And thanks to Brownstoner we also know that the mystery owner plans to develop a huge gallery space with apartments, most likely condos. "The first two floors will house a cafe, reception and art gallery over 7,805 square feet…. A two-story addition is [also] planned, which will house two duplex apartments with terraces over 4,663 square feet." The Department of Buildings (DOB) has reportedly given a thumbs down to the planned expansions. And we agree with Brownstoner, which praised the modernity of the new design, but added: "We think it would be even better if the original building were restored, arched brick windows and all."

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Evidence of construction is everywhere in the city. But not everyone looking to buy a co-op or condo gets to do it in a brand-new building — or wants to for that matter. Anyone who snaps up a unit in an older New York building can always remodel it: knock down a wall here, cut through another one there… with permissions, the sky's the limit.

Any remodeling work that requires a New York City Department of Buildings (DOB) permit also requires an asbestos survey. Here are some guidelines for how to properly perform and complete a survey, as well as an explanation of abatement procedures.

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It's no news that prices in Bed-Stuy have been on the rise and then some. Just ask all the people who have as many as four roommates and still find their share of rent creeping close to the $1,000 mark. And what about buyers? Well, with the neighborhood's historic brownstones hitting record numbers, some agents say buyers are looking at condos as alternatives, reports DNAinfo. Halstead Property real estate agent Morgan Munsey said Bedford Avenue would soon become a "condo canyon." Why? "Fourteen studio, one-bedroom, and two-bedroom apartments will soon go on sale at a new 'boutique condominium development' at 1188 Bedford Avenue." With units at 1188 reportedly going for up to $825,000 — nearly a grand per square foot — it certainly looks like the condo boom is alive and well in Brooklyn, and Bedford Avenue it the new condo hot spot. Sure, $825,000 is hardly chump change, but it's a lot more affordable than dropping a million on one of those brownstones.

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Police detective: "Is there any other point to which you would wish to draw my attention?"

Sherlock Holmes: "To the curious incident of the dog in the night-time."

Police detective: "The dog did nothing in the night-time."

Sherlock Holmes: "That was the curious incident."

— Sir Arthur Conan Doyle,  "Silver Blaze"

Cooperatives (and sometimes condominiums) are often asked to intervene when shareholders complain about noise — in particular noise from a barking dog in a neighboring apartment. The case of Ho Foong Shiu Realty Corp. v. Pullman involves a rental apartment building, but the court's analysis and ruling concerning the proof required is probably applicable to co-op apartments as well. 

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April 1 is a date that boards in large, master-metered buildings should remember. That's the last day to maximize the benefits when they apply to a number of demand response (DR) programs that pay participants to not use energy on days when the heat or air conditioning spike. That's when Con Ed and/or the New York independent system operator requests "peak load" reductions from large properties that are part of demand response programs.

How do you get involved in such a program? 

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Here's a story that highlights why it's important for shareholders and boards alike stay on top of paperwork. A shareholder in an East Midtown co-op owns two contiguous units that he combined into one. He tells Ronda Kaysen in the latest "Ask Real Estate" column in The New York Times that the city has not asked him to change the certificate of occupancy, nor has he requested to have it changed. "I pay two maintenance and utility bills. Should I request a certificate of occupancy update from the city? What are the pros and cons of doing so?" Kaysen explains that making the change is "not a matter of choice. It is dictated by the city’s building code and depends on how the apartments were combined." Co-ops tend to not approve renovations that require changing the certificate of occupancy, but to be safe, Kaysen recommends having the architect or engineer confirm whether the renovated apartment is in compliance with the law "and if that requires changing the certificate of occupancy." Even if the certificate of occupancy doesn't need to be updated, you may still need a letter of completion from the Department of Buildings (DOB). You don't want to find yourself in a position where you need to produce the appropriate paperwork and don't have it. Kaysen adds that the managing agent can combine the two stock certificates and leases into one to simplify the maintenance and utility bills. 

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It began with an inquiry into the bribery of a single Department of Buildings (DOB) inspector. What followed was a nearly two-year investigation, initiated by the New York City Department of Investigation (DOI) and the Manhattan District Attorney's Office's Rackets Bureau, which revealed evidence of approximately $450,000 worth of alleged bribes made in connection with more than 100 residential and commercial properties in Manhattan, Brooklyn, and Queens. Defendants include eleven DOB employees; five Housing Preservation & Development (HPD) employees; and twenty-eight property managers, contractors, and expeditors.

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Don't you hate it when you're stuck between a board that may be exceeding its authority and illegal Airbnb operators? Co-op and condo boards are savvy about illegal hotel operators, as often demonstrated in their bylaws. But boards aren't perfect, and sometimes they do go a little too far — even if they have the best of intentions. This seems to be the case at one New York City condo, where a board has instituted a new policy, a condo resident writes to Brickunderground.com. Those who live in the building must now submit a "permission to enter" form for every guest who stays over — without making the distinction between a significant other or relative crashing for the night and a short-term Airbnb subletter. The knee-jerk reaction is to remark that the board is being outrageous, nosy, and controlling. But when you consider that, as the same condo resident points out, these illegal short-term subletters are a persistent issue in the building, you kind of have to appreciate that the board is in a bit of a tight spot. On the one hand, the board has to protect the building and its residents. On the other hand, it does seem as if this board should consider relaxing the rules for regular visitors or family members. "A board requiring that written permission include addresses and phone numbers of [guests] might be viewed excessive for identifying entry authorization," says one of Brickunderground.com's experts Ken Lupano, executive director of Solstice Residential Group, a property management firm. "Perhaps that can be revisited." Just remember, employ the bees to honey approach and try to reason with the board. Lawsuits are time-consuming and expensive and will certainly generate a lot of bad blood.

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