Standard condos in the Bronx

Which condominiums of this kind are actually in the Bronx?

• A very large mid-century planned community in the east Bronx, converted to condominium ownership in stages
• Newer small and mid-size buildings through Mott Haven, Port Morris and the south Bronx waterfront
• Scattered conversions along the Grand Concourse and in Riverdale
• A borough where the co-op stock is larger than the condo stock, which is the reverse of Brooklyn and Queens

What changes about the waiver and the loan file in the Bronx?

• In the newer small buildings, presale percentage and sponsor holdings are the warrantability tests that decide whether a lender will write in the building
• A small new building with few closed sales can be non-warrantable on day one and financeable a year later, purely on the presale count
• The very large community operates through its own management structure, and its rules and charges are set at that scale rather than building by building
• The approval step across the borough is a right of first refusal waiver rather than a board package

Which taxes and recording steps apply in the Bronx?

• Mortgage recording tax applies to the recorded mortgage, and the deed and mortgage record with the City Register through ACRIS
• New York State transfer tax and the New York City real property transfer tax apply, shifted to the purchaser in sponsor sales
• Newer Bronx buildings frequently carry a construction-related tax benefit that steps down, so the carrying cost rises on a schedule
• The mansion tax is reached on very few Bronx condo sales given the borough’s price distribution

What pattern does a purchaser meet in the Bronx?

• In a new small building, ask how many units have actually closed, not how many are in contract, because lenders count closings
• Environmental history along the south Bronx waterfront belongs in the offering plan, and remediation obligations survive the sponsor
• The large planned community charges for services an ordinary condominium does not provide, so its charges are not comparable to a small building’s
• Open Department of Buildings items on a newly completed building, including a temporary certificate of occupancy, affect both financing and insurance

What else should you read before closing on one of these?