Renovations developer has agreed to do post closing

[Benny]

Please see below for a sample list of items that a sponsor has agreed to fix for a buyer before and also after closing. Even though I thought sponsors would only do punch list items in a best efforts manner in a commercially reasonable amount of time, apparently you can put the work list as a rider to the contract!

This information is intended as a draft template for what will be included in a rider to the contract.
1. Harmon Kardon sound system with wireless audio remote installed in the kitchen and two speakers installed in the kitchen/living room soffit (see attached photo for approximate speaker installation location).
2. The current master bathroom tub will be replaced by a American Standard model K-1115-RA (acrylic) in white. This tub is approximately 22” deep.
3. Master bathroom existing pedestal sink to be replaced with a wall mounted vanity to be made of Mahogany veneer, with a Carrara marble stone top. In similar style and construction to the attached photo. The sink will be different than the one shown in the photo and will be an unde-rmount white sink made by Bemis model number 034058.
4. Master bathroom mirror to be surface mounted not to exceed 57”w x 33”h. Light above mirror will be changed to WDC WS99841-CD (see attached photo for light style)
5. Hall bathroom existing pedestal sink to be replaced with a wall mounted vanity to be made of Cedar or Oak veneer, with a Carrara stone top. In similar style to the attached photo with only two doors and sized to fit in the allotted space. The sink will be different than the one shown in the photo and will be an under-mount white sink made by Bemis model number 032345.
6. Hall bathroom mirror to be surface mounted approximately 22”x33”.
7. We have discussed the construction requirement of the wall removal with our counsel. He has advised us that the proposed approach is inadvisable and may not be feasible. The wall removal work will require, in addition to a change in a certificate of occupancy for the building, work permits issued by the NYC Department of Buildings. This work will necessarily take place after transfer of title to Nick. At that time the Sponsor will no longer have standing to file an application with the NYC Department of Buildings for work in the unit because it is no longer the owner of the unit. We propose the following alternative: that a predetermined value for the wall construction be placed in escrow at the time of the closing. At closing Sponsor’s contractor will enter into a contract in the amount determined to be the value of the work and to commence the work within 5 business days of Contractor obtaining the work permits from the NYC DOB. Purchaser will pay the contractor out of the escrowed funds. Further Purchaser will be reimbursed for its filing expenses and expediter fees out of the escrowed funds. Purchaser to file and obtain work approvals from the NYC DOB. The value of these items to be broken down by category for expediting and work. Purchaser should know that in the area where the wall between bedrooms is to be removed oak flooring of similar grade and type will be installed. Due to the size of the space created by the wall removal, the infilled pieces will vary slightly in width relative to the existing 2 ¼” planking. The whole floor will be sanded and refinished.
9. I have attached a floor plan. Please have the buyer draw in the configuration of the second bedroom closet he has in mind with approximate dimensions. The enlargement of the closet construction is going to be subject to the escrow components suggested above.

[aslan]

Points 1-6 seem pretty reasonable, and yes a buyer can get away with demands like that in the current weak state of the market. We're flooded with inventory, especially in new construction, and sponsors are offering all sorts of concessions, from paying their own transfer taxes to offering to pay the buyer's Mansion Tax.

The only comment I have is for point 7. It seems like they are just being quite cautious. If the wall isn't structural, I'm not entirely sure a permit needs to be filed in the first place. Remember DOB permits only need to be filed if it's a more serious change or renovation. However, perhaps the sponsor knows something you don't. Perhaps the sponsor knows for sure that a permit would need to be opened, in which case there's more complexity and you'd have to hire an expediter (a Department of Buildings "filing representative") to move your renovation job along.

Furthermore, I know some offering plans specifically prohibit new owners opening up permits for some period of time, say 1 year, post closing. That's because the building can't have any open permits if it wants to get a permanent Certificate of Occupancy. Something to look into, because if there is that language in the offering plan and the work definitely requires a Department of Buildings permit to be pulled, you may have to wait a year or so before getting that renovation work done!

[leonardgeryol]

Hello Benny. Thank you for sharing your problem with us here. In my opinion, the buyer is making too many conditions and is not guaranteed that he will finally buy the house after the problem is fixed. Make sure that you will have the proper agreement so he will pay back the money spent on repair works. Regarding doors issue, you can buy cheap door frames from these guys https://doorsdirect2u.co.uk/product-category/french-doors/. Frames presented on-site look very good and have affordable pricing, so you can replace old frames, and the buyer will purchase the doors he wants after the deal is finished.