Closings glossary
Offering plan
The sponsor's filed disclosure document for a co-op or condominium, carrying its budget, share or common interest allocation, building rules and sponsor commitments.
What is an offering plan for a co-op or condo?
Quick Answer
The full definition
The sponsor's filed disclosure document for a co-op or condominium, carrying its budget, share or common interest allocation, building rules and sponsor commitments.
Also called: Prospectus, Offering plan amendment.
Where does offering plan come up in a New York City closing?
A buyer in a converted Harlem building reads the offering plan and its eleven amendments to see what the sponsor still owns and still owes.
What else should you read before closing?
In the glossary
- Proprietary leaseThe occupancy lease a co-op corporation grants a shareholder for a specific unit. It is assigned at closing together with the stock certificate for...
- Common chargesThe recurring charge a condominium levies on each unit for building operations and reserves. Real estate taxes are billed to the unit directly and ...
- Maintenance (co-op)The monthly charge a co-op levies on each shareholder, covering building operations plus that shareholder's share of real estate taxes and the unde...
- Right of first refusalThe right to match an offer before a sale closes. In condominiums it is exercised or waived by the board, and the written waiver is delivered at cl...
- Land leaseA building whose land is leased rather than owned. The lease term and rent reset schedule sit in the offering plan and shape much of what the apart...
Questions this raises
Building types
- New-development condoA first sale from the sponsor of a newly built condominium, governed by an offering plan, often delivered on a temporary certificate of occupancy.
- Sponsor co-op unitAn unsold share allocation still held by the building’s original sponsor, sold under the offering plan rather than through the ordinary board process.
- Sponsor resale condo unitAn unsold condominium unit the sponsor still owns years after the building opened, sold under the original offering plan rather than as an ordinary...
- Condo in a converted buildingA condominium created by converting an existing rental building, where non-purchasing tenants, the reserve fund and building-wide conditions carry ...
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