Do-it-Yourself Real Estate Due Diligence in NYC
Go Back To Previous Page
When buying property, it can feel like a lot is happening all at once. The attorneys finalize the deal, draft and negotiate the contract quickly. Then, the building’s board and management provide various “due diligence” materials. A wealth of publicly available information can assist clients and brokers, educating them throughout this process. We have compiled some go-to resources that we frequently use during the real estate due diligence period and cycle in NYC.
Therefore, call our office for additional assistance if you have questions about utilizing these resources. We will outline the comprehensive scope of the real estate due diligence checklist. What is due diligence in real estate? What are the best websites for home buyers and sellers?
NYC Property Tax Bills: the first step of your Real Estate Due Diligence
New York City real estate tax bills are available for viewing and downloading online. They can help confirm a Seller’s representations of the annual taxes due and assess if the property is in arrears.
This portal allows users to view and download bills, as well as confirm their annual tax payments.
Property Tax Benefit Information
The New York City Department of Finance provides information on property tax abatements and exemptions for property owners and real estate professionals.
Use the following portal to view which abatements or exemptions are applied to a property and for how long. In addition, you can find how those same abatements and exemptions are calculated:
Department of Buildings for your Real Estate Due Diligence
The New York City Department of Buildings (“DOB”) tracks various property information, including complaints, violations, construction and plumbing applications and permits, as well as inspections.
They also monitor and publish current Certificates of Occupancy and Temporary Certificates of Occupancy of record. Use their website to confirm if there are open violations or permits against a unit or building, and see if their Certificate of Occupancy is still current.
This is part of the real estate due diligence checklist.
ACRIS: a precise tool for your Real Estate Due Diligence
ACRIS (the “Automated City Register Information System”) hosts the accepted land records of the New York City Clerks for Kings, Queens, and Bronx Counties. Therefore, this database provides real estate professionals with access to most records filed against properties in New York City, as well as those in the specified counties.
However, there is sometimes an inconsistency in the availability of documents over 15 years old.
As of May 2013, ACRIS can search for land records against co-ops. This helps confirm early if there are any outstanding liens against a unit. Use ACRIS to determine a property’s tax block and lot, as well as to find property deeds, mortgages, and UCC financing statements.
Also, you can identify easements or restrictions on the use of a property.
Another helpful tool for your Real Estate Due Diligence in NYC: Offering plans & Amendments.
The Real Estate Finance Bureau of the Office of the Attorney General hosts a helpful lookup tool. This tool can confirm if the Attorney General’s Office approved an Offering Plan and any amendments.
It eliminates the guesswork of determining how many amendments have been filed for older buildings and co-ops, providing the most recent count. Use the Real Estate Finance Bureau’s lookup tool here.
Department of State, Division of Corporations, the last steps of your Real Estate Due Diligence
The Corporation and Business Entity Database includes business and not-for-profit corporations, limited partnerships, LLCs, limited liability partnerships, and other miscellaneous businesses. As such, you can confirm the actual names and statuses of the cooperative corporations.
Then, look for alternate or assumed names for the corporation and ensure the status is permanently active. The Division of Corporations’ database is here.
Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.
