1. Buyers are focused on their monthly carrying costs especially in todays market, so
   coops can be a great option as they are generally cheaper than condos , have low
   closing costs , and taxes are wrapped into the maintenance
2. Coops do require more money down and a max percentage of financing so Buyers
   may have to be qualified
3. Greater restrictions so best for buyers looking for long term primary residence

CONDOS:

1. Seller Concessions: Sellers can still maintain their sale price point by issuing a closing cost
   credit which allows buyers to finance in their closings costs to their mortgage payments , so
   that the Buy
2. PURCHASE CEMA’s: This is a great tool to save your clients money on the mortgage
   tax. The mortgage tax is 1.8% of the loan amount if under $500k, and 1.925% of the loan
   amount if over $500k. However if the Seller has a current mortgage, then we arrange for a
   Purchase CEMA whereby the Seller’s lender assigns the mortgage to the Purchaser’s
   lender. Then the mortgage tax is reduce based on the difference between the Seller’s
   principle mortgage balance and the Purchaser’s loan amount. This is called the “new
   money” and is taxed at the above percentages thus significantly saving the Buyer in the
   mortgage tax.
   1. FEES: the Purchaser CEMA fees range around $1500-$2000 for the processing
      and recording and legal fees
   2. INTERNAL CEMA vs OUTSIDE CEMA : if the Buyer applies for a mortgage
      with the Seller’s current lender, it’s a lot faster and seamless. However if the
      Buyer wants to stay with their bank, is called an Outside CEMA and may take a
      little more time and increase the fees.
   3. COLLATERAL DOCS (original Note & Mortgage) – the sellers current lender
      must locate the original Note & Mortgage in order to assign it to the new lender.
      If they lost the originals, then the CEMA cannot be completed.
   4. Splitting Savings : some Seller’s get greedy and request that the Buyer split any
      mortgage tax savings with them 50/50 in exchange for their cooperation.

1. 1-2 years of free maintenance
2. Free storage bin or parking
3. Sponsor pays their own transfer tax & atty fee
4. Sponsor pays Buyer’s Closing Costs as well (title insurance, mortgage tax, etc)
5. Items of Seller’s personal property included for free as leverage ( furniture ,
   chandelier , artwork ) ** Note : this is a great tool to separate the price from the
   personalty as it will save the seller on transfer tax / capital gains and save the buyer
   on their closings costs as well ( provided they are paying cash for the items
   separately )

1. Side Agreements: when submitting an offer for property $1M or greater, your
   buyer will be required to pay a 1% mansion tax. Therefore, propose that the
   purchase price will be $995,000 and the parties will enter into a side agreement that
   Buyers will contribute the balance of the purchase price toward Seller’s closing
   costs (ie: broker commission, transfer tax, etc). This will save your client $10,000 or
   more!
   1. This also saves the Seller on STATE transfer tax with the continuing lien
      deduction
2. Rent to Buy Options: For new construction properties and vacant resale properties that Sellers don’t want to
   continue carrying, propose this option to a Buyer who is not ready to buy due to
   circumstances or funds (can be 6 months- 1 year lease). *You collect double commission,
   on rental and sale.
   1. Arrangement can be made where monthly rent will include a portion to cover
      seller’s carrying costs, and a portion to go toward 10% deposit (such as 50/50
      split of rent). If Buyer defaults on purchase, then deposit monies collected will
      be retained by Seller as liquidated damages.
   2. Another option is to have Buyer put 5% down upon lease signing, pay rent
      accordingly, and then put another 5% down upon exercising the option to buy
      after 6 months. If he/she defaults, then 5% is retained by Seller as damages.
      Also, the parties will agree to average the 2 appraisals in order to finalize the
      purchase price in the event of significant market shifts.
   3. For new construction buyers, Buyer can move in once TCO is issued as a
      “preclosing tenant”. Buyer will pay market rent to Sponsor until closing and
      rental amount can be negotiated at a discount which will provide additional
      savings for your client.