Condo Purchase Timelines

Initial Steps

Submit an Offer: The buyer submits an offer along with a financial statement and either a pre-approval letter (if financing, issued within the last 3 months) or proof of funds (if paying cash).

• Review the financial statement with your real estate agent.
• Select a Manhattan-based real estate attorney specializing in residential law.

Offer Accepted

Deal Sheet Created: Once the offer is accepted, the terms are outlined in a "deal sheet" and sent to both attorneys (buyer and seller).

Contract Drafting & Due Diligence

The seller's attorney drafts the contract and sends it to the buyer's attorney, who then conducts due diligence:

• Reviewing the building's financials.
• Reading recent board minutes.
• Having building management complete a questionnaire.
• Buyer's bank obtains building approval (if financing).

Contract Signing & Deposit

Once due diligence is complete:

• The buyer signs the contract and deposits 10% of the purchase price into escrow with the seller's attorney (this deposit is applied toward the down payment at closing).
• After receiving the deposit, the seller signs — the apartment is officially in contract.
• Either party may still back out at this stage.
• The seller may also accept a higher offer from another buyer until the contract is fully signed.

Condo Application

Once in contract, the buyer begins working on the condo application. Requirements vary by building but typically include:

• Bank statements
• Tax returns
• Reference letters
• Employment verification

Management reviews the completed application first, then forwards it to the board if no issues are found.

Board Review & Approval

The board reviews the application and issues approval which is called a "waiver".

Closing

After approval, the attorneys coordinate and schedule the closing.