Are you looking for a potentially cheaper way to buy a luxury condo in NYC? Have you ever thought about participating in an auction but didn’t know how the process worked? With the economy slowing down and more real estate becoming available in Manhattan, now is the time to land a great deal. Auctions provide an open and transparent experience in which competing buyers set their own price for a property. The property we’re discussing today is located at 1600 Broadway, a luxury, full-service condo building in the heart of Times Square near Rockefeller Center. Below is a description of the features and amenities along with any other information you could want. The website link above has pictures of the property and approximate floorplans as well. If you’re interested in either participating in May 14th’s auction or learning more about it, please contact me (nycondoblog@gmail.com) and I’ll put you in touch with the auction company. They are among the most reputable auction companies in New York, overseeing $100M+ each year in real estate transactions.

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We’ve had a lot of readers inquire about the mortgage contingency clause over the past year or so.  We consulted with Jack Harari of Weidenbaum & Harari, LLP for a more professional opinion:

Sellers and Buyers alike often inquire as to the meaning of the “mortgage contingency clause,” one of the more significant clauses in New York real estate contracts. Simply put, a mortgage contingency clause ensures that if a buyer promptly applies for a loan from a qualified lender, but fails to obtain a firm commitment for financing within the specified time period, then the buyer may elect to cancel the contract and receive the return of the initial downpayment. It should be noted that the commitment letter should not be confused with the “pre-approval letter.”  A pre-approval letter is typically a nonbinding letter of very little legal weight issued by a bank prior to conducting a more detailed investigation of the borrower and the property.

There is often a great deal of confusion in the New York real estate market as to whether a mortgage contingency clause is “necessary.” The common explanation given is that buyers should request the clause because it affords them added protection if they are applying for financing, while sellers should avoid the clause because it may result in delays caused by the buyer’s loan approval process, or by having to find a new buyer altogether in the event that the buyer in contract cancels under this clause.

Whether a mortgage contingency clause is “necessary” depends on several factors, including: (1) the financial status of the buyer; (2) the appraised value of the unit for sale; (3) in the case of co-ops and condominiums, the financial viability of the co-op or condominium community of which the unit is a part; (4) overall real estate market conditions (e.g., buyer’s market, seller’s market, lender’s market). For example, a relatively wealthy individual buying a co-op unit that appraises below the contract price and in which the bank’s underwriters are not satisfied with the financial condition of the co-op may be denied a loan, where a person with relatively less wealth buying a condo that appraises exceptionally high in a financially solid building might be approved. And in either case, the overall real estate market conditions may result in a very different reality. For example, in a “seller’s market,” a seller who has prospective buyers banging down the door with offers well above asking price will have little incentive to agree to a mortgage contingency, while in a “buyer’s market,” the same seller might have no other option but to include the contingency or lose a potential buyer.

It should also be noted that there is no “standard” mortgage contingency clause in New York, although there are a number of common clauses circulating through the industry. Some clauses act like protective bubbles that surround the buyer for a time, and then “pop” and disappear altogether once certain conditions are met. Other clauses act more like shields that guard the buyer from certain conditions throughout the entire contract process.  It may be possible to find a middle ground that can will satisfy the buyer’s need for financial protection, while reassuring the seller that the contingency period will be short. Therefore, we strongly urge prospective buyers and sellers to consult with their attorneys about this clause in particular, and about the overall process of negotiating a deal from the time of offer/acceptance, to signing the contract, to closing!

Jack Harari, Esq.

We thank Jack and his team for their opinion.  If you have question regarding this issue feel free to contact them at 212-832-7400 or at http://www.whfirm.com

This post is supported by medical malpractice lawyer New York

Overview

Curbed got our attention about the recent design changes taking place over at the Sundari. Andrew Heiberger, one of the developers, is hardly modest about his expectations for the project, claiming it will “introduce Manhattan to an entirely new brand of living”. Taking its name from a Sanskrit word for beautiful, the Sundari Lofts and Tower building looks to become the latest buzz in the thriving condominium district on lower Madison. To make certain that the building’s design lived up to its name, developer Thorwood Real Estate LLC teamed up with Ismael Levya Architects (Time Warner Center) for the layout and design. Located between 32^nd and 33^rd streets, the mega-development consists of 37 floors and 103 units. Sundari hopes to become a new living space for well-to-do buyers who enjoy luxury and comfort in the midst of New York’s urban culture.

When the land for the building was first purchased in 2005 by Buttonwood Real Estate LLC, the original architectural plan was for a T-shaped structure that only included 50 units. However, in the summer of 2006, the project was halted as both Buttonwood and Thorwood considered selling the plot and building Sundari elsewhere. Deciding against reselling the property, the T-shaped structure was revised and construction was resumed over a year later with a newer and more ambitious plan which included 103 units and over 150,000 feet of space.

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