Condo Questionnaire in NYC Explained
Who fills out the condo questionnaire during a real estate transaction in NYC? What is the point of a condo questionnaire and is there a cost associated with the form?
A condo questionnaire is typically completed by a condominium building’s managing agent for a nominal fee that ranges up to $200.Lenders are required to conduct this questionnaire for buildings they have not already approved or previously made a loan against.
Besides providing answers to basic due diligence questions, the condo questionnaire serves to qualify the building for government backed loan programs administered by entities such as Fannie Mae.
Qualifying the building for the loan programs of government sponsored entities such as Fannie Mae is extremely important for bank lenders so they can sell their loan exposure to these government sponsored enterprises. As long as the loan is within a certain size and thus conforming to standards set by these government sponsored enterprises, it will be eligible to be sold off the bank’s balance sheet to these quasi government agencies. As a result, the bank is able to free up capital to make fresh loans and pocket any origination fees.
Sample Letter of Completion from the Department of Buildings in NYC
Please be advised that the work related to the above application is completed and was signed off in the Building Information System (BIS) on [Date].
Because this job was professionally certified, the owner retained a registered professional engineer or registered architect, who certified that the contents of the application comply with the applicable laws, rules and regulations of theDepartment of Buildings.
Because this job was filed as Directive 14 of 1975, the owner retained a registered professional engineer or registered architect, who certified that he/she inspected the work approved on this application and that it complies with the applicable laws, rules and regulations of the Department of Buildings. Based on the nature of the work filed on this application a new certificate of occupancy is not required.
A Letter of Completion is an important sign off to receive as your lawyer completes his or her due diligence before you sign a purchase contract. A Letter of Completion from the Department of Buildings signals that the local government believes the building has a valid Certificate of Occupancy and thus the building is legally habitable.
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