What is an alteration agreement?

Almost every building requires one before work begins, and the terms are not negotiable in most cases. The purchaser signs the building’s form, submits plans stamped by an architect or engineer, provides the contractor’s license and insurance certificates naming the building as an additional insured, and posts a deposit against damage to common areas.

The scope of what needs consent is wider than buyers expect. Plumbing, electrical work, moving a wall, changing flooring, replacing windows, anything touching a wet area over a neighbor’s ceiling, and anything requiring a Department of Buildings permit usually trigger the agreement. Cosmetic painting generally does not.

Unpermitted work by a prior owner is the problem this creates on a purchase. Where a kitchen was moved or a wall removed without approval, the buyer can inherit an open permit, an OATH (formerly ECB) summons against the building, or a demand from the board to restore the apartment. The searches and the building’s file should be read together.

For a purchaser planning renovation, timing matters. Board review of plans, permit filing and the building’s work-hour restrictions can add months, and buildings often bar work during summer or holiday periods. Ask for the alteration agreement and the current renovation policy before the contract, not after closing.