So, nothing is simple anymore. Doing construction in nyc is not simple. I've received several emails asking why i don't do this or how comes i can't do that. Also, just like any industry, construction and renovation has a very unique vocabulary. Here are some of the definitions that might be helpful if you are embarking on your own project.
WEIRD (aka PIA) RULES
I am not a lawyer. Please don't use this information if you are actually buying an apartment. Get a lawyer. Maybe a real estate broker. Really. This is just what I believe to be true. I am not a lawyer or an expert.
1). Why cant you do your own demo, it's your apartment,right?
You have to have insurance to work in your apartment, I believe even if, you are the one doing the work. And, it is a huge pain to get stuff thrown out. Contractors usually call in a demo service and they take your garbage away. You can't just throw out old sheetrock and flooring. So, after the insurance, paying for garbage to be removed, etc. it is usually almost as much to do the work yourself. Some very brave folks do renovate themselves, but I was not ready for this headache. And I have a habit of starting a project and not finishing it. (Evidenced by the half painted apartment I currently live in, and the half painted bedroom I grew up in. Both projects seemed "very simple" but I never finished. It was very important I have a finished apartment that would be safe for me (no falling, no flooding, no electrical fires, etc.). Also, if something happened and a pipe burst during construction, it is my contractors problem. Not mine. You never know who might have a Picasso hung up in the apartment below you just waiting for the water damage to ruin it.
In a co-op you have to fill out a ton of paperwork, sign a million checks for deposits, fees, etc to do a renovation project. It becomes almost impossible to do it on your own.
VOCABULARY and TERMS
Co-op? Condo? Condop?
Below is a huge generalization. If you want legal advice, get a lawyer. This is just my generalization. Do your homework. Carefully!
Well if you bought a condo, you own the apartment. You pay a monthly fee to the company that cleans the lobby, pays the doorman,etc. Most condos are free to do what you want. If you want to rent out your apartment, this is great. But if you want to make sure you're not living next to a one bedroom with 12 sorority sisters crammed into it, a co-op may be a better choice. The co-op board is elected. The co-op board sets the downpayment requirement for the building. You have to be approved by the co-op board. This is separate from your mortgage. Just cuz you got a mortgage doesn't mean you can buy the apartment. See the Downpayment Requirement section.
If you bought a co-op, you own specific shares in a building, a "cooperative building". You own the specific shares for your exact apartment. The co-op makes rules collectively, or cooperatively. Many co-ops have a rule that you can't rent out your apartment. Why? You bought a co-op knowing your neighbors also bought their apartment. Presumably everyone owns their apartment unglued building, so everyone will care about the building. The idea is: renters probably won't care as much about the building as an owner. Each co-op board has their own rules about being able to rent out your apartment. If you know you want to be able to rent out your apartment, get the co-op rules in writing; a condo or a condop is probably a better idea in most cases.
A condop is a combination of a co-op and a condo. Exactly how their rules work will depend on each individual condop.
Downpayment in a Co-op: you will need to meet the banks Downpayment requirement (if you are going to have a mortgage AND you need to meet the co-op boards requirement for a Downpayment.
For example:
It is possible for a bank to approve you with a mortgage at 10% down BUT, the co-op board requires 20% down. Just cuz you get approved for a mortgage, doesn't mean you will be approved from the co-op board. No board approval, no buying the apartment.
The benefit of a co-op board Downpayment requirement: you own shares in your co-op building. If your neighbor down the hall doesn't pay their monthly maintenance (taxes, insurance, maintenance of the building, guess who pays it? You and all your neighbors. You are all in this together. You want to make sure your neighbor can pay their bills so the rest of the building doesn't have to pick up the tab.
So overall, meeting the co-op boards Downpayment in a pain when you are trying to buy the apartment, but once you live there, it's in your best interest for everyone applying after you to have stellar credit and be able to afford the Downpayment.
Downpayment in a Co-op & Condop: the individual building will have a requirement about your Downpayment requirement and credit score. Keep in mind: if you were able to buy the apartment with no money down and a lousy, very low credit score, everyone after you can be equally as lousy. Do you want to live in a building where no one pays their bills? If this is okay with you then great. Just don't get upset when no one is paying to clean the common hallways, the lobby or shovel snow.
Pull Insurance:
Scope of Work: this term has nothing to do with any tool a proctologist may use. Instead this means the entire list of stuff to be done. For example: "I had dreams of including adding 25 extra outlets to the Scope of Work, but it was too costly."
Shower Body: this means all the stuff behind the walls and the faucet, shower head and sprayer(s). For example: "I bought a Shower Body with 3 extra spray nozzles." OR "Choosing the right Shower Body at the beginning of a renovation ensures a happy ending to your project." This does not have anything to do with the actual walls of your shower.
Sponsor Apartment: sometimes a rental building converts from rentals to ownership. People who are renting often are offered an insider price. People who buy then become part of the co-op, condo or condop association. The renters, typically can continue to rent. Eventually these renters move out, then the original building owners can sell the apartment. The original owners are called the sponsors. For example:
A building was built in 1966 as a rental building. In 1980 the building owners (aka the sponsors) decide they want to sell the apartments.
- Posted using BlogPress from my iPad
