But a sponsor is not prevented from voting its percentage of common interests for unit owners who have similar views, as long as the unit owners are not on the sponsor's payroll or otherwise given money by the sponsor. Pay Attention To Closing Costs. Homes for sale; Foreclosures; For sale by owner;. Sale Contingency. Higher rates apply for commercial transactions and multifamily properties with 4 or more units. A buyer of a unit in a building or group of buildings that is under construction should first understand that the text of the offering plan governs the sponsor's obligation regarding the size and construction of the buildings, units and any ancillary spaces such as recreational facilities, parking spaces, or roof top cabanas, to name a few. This is the reverse of a traditional private resale where sellers pay the Transfer Taxes and cover their attorney fees. If you pay 400k in cash, you’ll have memories and 400k in equity. and filed with the New York City Register. Anyone deemed worthy by the sponsor and a mortgage lender qualifies to buy the apartment, and the co-op has no control over who moves in. 10453 is a fairly walkable zip code in Bronx County with a Walk Score of 88. in new york city pls advise. “Sponsor listings” mostly are found in condo buildings, since. A sponsor is a person or business entity starting a condo or co-op through conversion or as new construction. That happened to Lincoln Towers, for instance. A guide to using a no-fee renovation loan from a NYC real estate firm. The sponsor is the person or entity who originally owned and converted the building from rental units to a co-op. We’ll teach you everything you need to. The pandemic upended New York City’s real estate market,. How buying real estate in NYC is unlike anywhere else. Mansion Tax must be paid on all real estate purchases over $1000000. Sponsor units can sometimes be found in new-development condos, in which case the developer. The median price for a two-bedroom apartment in Midtown East is $1,850,000, based on current listings on StreetEasy. So if you're buying a new apartment from the sponsor, be prepared to cover the transfer tax. If you plan on buying a home in New York,. “ Procuring cause” does not get defined precisely anywhere. 4 All checks for closing adjustments aggregating in excess of $2,500. “This could add 1. (But it is high for Riverdale, where the median asking price for a one bedroom is $230,000, according to StreetEasy. The exact time will depend on the property and whether you’re making an all-cash purchase or financing. conversions in New York City from 1961 to 2020. 425 to 1. Ariel Property Advisors. This updated apartment has new appliances, new kitchen sink. 5Bath on the 4th floor of an elevator building. Recently Sold. #SponsorUnitsNYCThis two-bedroom sponsor co-op is a bit over the neighborhood's median, but you're getting a lot of renovated living space and decent amenities including a live-in super. Glencore Plc will buy a majority stake in Teck Resources Ltd. 4% transfer tax to New York State. Assisted FSBO Listing; Professional Photography; Virtual Staging; Custom Floor Plans; 3D Virtual. Sale Contingency. given I did like the unit, I initially offered to renogitate on the price given the greater than 5% discrepancy in sqft, yet when I pointed out this discovery to them, they immediately got quite annoyed and said no to negotiation. In the 1980s, when many buildings were converted into co-ops, the original tenants had the option to purchase. Use the filtering options available (number of bedrooms and bathrooms, square footage, year built, etc. Still, the apartment has a large living and. That can be up to 1. Just note that while you save on the price, the monthly maintenance of $1,737 is on the high side. $360,000. Each apartment owner will be required to pay the assessment. Remember that sponsors typically expect new construction buyers to pay the sponsor’s NYS and NYC transfer taxes in addition to the. RECOMMENDED IN RENT. We also have a blog post that goes in-depth on the topic - check it out!Great article defining a sponsor unit and illustrating both the pros and cons of purchasing one. Q Our building is 75 percent shareholders, 25 percent sponsor units (renters). For buyers, sponsor-owned apartments usually carry a higher price tag than resale units, despite the wear and tear they might. How to handle problems with a condominium board of managers. Buying a Sponsor Unit in NYC: Up to 2% When Buying in NYC: New York State Office of the Attorney General has promulgated regulations that govern the offer and sale of interests in cooperatives and condominiums. Buy. You might be able to organize with the other tenants into buying the whole building and going co-op, but that’s a huge undertaking. For a $1,750,000 co-op in New York City, the typical buyer closing costs would be $27,000. Sponsor units in NYC are more commonly found in co-op buildings that once operated as rental properties. For example, if you're buying a home in New York City, you will pay 1. ) Without this document, buildings cannot be legally inhabited. Today might be your lucky day on your apartment search! Introducing a sponsor unit, Junior 42bedroom at the prestigious The Virginia building. A condominium, co-op, or apartment that the builder or investor has kept after selling the other units is referred to as a sponsor unit. Renovated, it includes wood floors, plentiful cabinets, a kitchen island, and recessed lighting. . Tend. Reads. By Jennifer White Karp | July 18, 2023 - 2:30PM. For Luis Vargas, the answer was to buy a sponsor co-op for his mom—one of the big incentives to buying these types of apartments is that you can skip the board approval process. Sales of cooperative. Buyer Closing Credit; Search for Listings; Closed Transactions; Sell Menu Toggle. Sponsors will need to deliver a unit in accordance with both the Offering Plan and the Purchase Agreement. The New York City transfer tax sits at 1% of the sales price for homes worth $500,000 or less. I was in contract for a $450K studio but then Board declined my application. Q. One of the most desirable towers in Midtown East’s stately Tudor City complex, this 24-hour doorman building is equipped with on-site laundry and a 2,000-square-foot, recently updated gym with river views. Most sponsors ask for 10. This is the reverse of a traditional private resale where sellers pay the Transfer Taxes and cover their own attorney fees. 10 Things You Need to Know Before Renting in NYC; What are Sponsor Units in New York City Real Estate? Your Guide to Renting an Apartment in New York City; Latest Trends in New York City Real Estate: 2023; Top 10 Things to Consider When Buying a Home in. 00:08:54;. National Cooperative Bank offers competitive rates and easy pre-qualification. Yes, you can avoid all of the trouble by buying a sponsor unit. 9% applies to purchases of residential property valued at $25 million or more. In New York City, the transfer tax is 1% of the purchase price on properties less than $500,000, while it is 1. They essentially buy the unsold shares of the co-op, wait for the rent-stabilized tenants to move out, then flip the apartment and list it as a sponsor unit. Finally, a co-op charges a monthly maintenance , which includes the salaries of the superintendent and doormen, the cost of the building’s mortgage and property taxes, as well as water. coop . This can be a tedious process as some co-op boards will require potential sublessees to fill out the same lengthy co-op board application as prospective purchasers in the building. National Cooperative Bank offers competitive rates and easy pre-qualification. 10018, or by. National Cooperative Bank offers competitive rates and easy pre-qualification. A sponsor can sell all remaining sponsor units as a bundle to another sponsor, coupled with all other sponsor rights/responsibilities in the building. vacated and sold each year, and the sponsor's done much better overall with the post-conversion sales than on the initial 50%. 75% New York. Here's why these units can be advantageous for NYC buyers. Main Menu. What distinguishes a sponsor unit from other apartments is that they have never been sold before. For transactions that are $500,000 and higher, that rate goes up to 1. The annual rent of a 2-bedroom apartment in NYC (approx. 89-00 170th Street UNIT 2N, Jamaica,. The big advantage of a sponsor co-op--and the reason they are so sought-after--is that buyers do not. 13 days on Zillow. You’ll often encounter more rules in a co-op building vs a condo building. 175% on mortgages above $500,000, and that includes the tax for both NYC and NY State. With mortgage rates at record lows, it’s a great time to buy an apartmen. There is an upside to buying a sponsor unit, most popular is that it usually is a co-op and with a sponsor. This two-bedroom, one-bath sponsor co-op 163 Ocean Ave. There have been some past sales in the building but it is probably still majority rental. $360,000. You’ll need to know how much you can afford or want to spend before starting your search. With 40 years of lending to buyers in New York City, NCB is the bank for co-ops. • Quicker buying process: There’s no board review or interview necessary when buying a sponsor unit, which makes the buying process much quicker and easier. The most expensive unit to enter contract was Unit 8401 at 35 Hudson Yards. Shares in IFF are down more than 40% since it. John Gasdaska and Jonathan Conlon are expert, experienced brokers and they are ready to help you buy or sell your piece of NYC real estate. in Chelsea has 44 units on five stories and dates to 1865. Queens County, New York City, NY . A guide to using a no-fee renovation loan from a NYC real estate firm. 2. For mortgages of one to three family houses and individual residential condo units with initial loan balances of $500,000. Since it’s a sponsor unit, the transfer taxes for NYC are 1% (since it’s under $500k) and 0. A sponsor unit is an apartment in a building that’s still owned by the original builder/developer of the building. Sponsor units are desirable because they usually do not require the buyer to undergo the traditional co-op board approval process. Each listing provides the specific income limits that the HDFC. by REW November 23, 2020 November 23, 2020 0 4260. Once your purchase contract is; countersigned, your condo board will. coop . Whether you are buying a new development, a co-op, or a condo, your unit should already have an offering plan out there, ready for your perusal. No board approval required; Tend to be renovated; Cons of buying sponsor unit in NYC. The lowest rate of 1% applies to purchases at or above $1 million and less than $2 million. — sq ft. However, when a sponsor unit is purchased, the buyer is traditionally responsible for paying the transfer taxes. No board approval required; Tend to be renovated; Cons of buying sponsor unit in NYC. 1ba. Landing a rent-stabilized apartment in New York City can be a lifeline for renters who would otherwise struggle to afford to live here. Y. Queens homes for sale. Listing by EXP Realty. When purchasing these types of units, buyers can completely skip over the (sometimes harrowing) board interview portion of the process. LISTING BY: R NEW YORK. All told, the transfer taxes in NYC can be between 1. The exact amount will be dependent on the interest of each owner, in addition to the total assessed amount and the duration over. Buying a Sponsor Unit in NYC: Up to 2% When Buying in NYC: Buying Guide; Foreclosure center; Real estate app; Down payment assistance; Find a buyer's agent; Rent Open Rent sub-menu. Post A Rental Listing. “Buying in a sponsor-owned co-op allows you to finance as much as the banks will allow you,” says Melissa Cohn, executive mortgage banker at William Raveis Mortgage. 8 percent. Closing costs involved in buying a new condo in NYC are usually higher than in resale transactions. 05% of the initial mortgage principal (includes a 1% New York City tax). 2. The first step in buying a condo in NYC will be setting a budget for your purchase. $2,300,000. At the most basic level, “a sponsor unit is an apartment that has never been sold” before. Here's a checklist of things to look out for in a New York City apartment. This is one of the many reasons it’s always ideal for comparing pricing within a building. Private Exclusives; Coming Soon;. It can also mean higher closing costs, however, and, in the case of. The roughly 1,006,000 rent-stabilized homes make up about 28 percent of the overall housing stock and 44 percent of all rentals. Pay a premium price for the convenience of no board approval; Re-sale poses the hurdle of board approval for the next buyer; Higher closing costs similar to new developments; When do sponsor units list for sale? What is a sponsor unit? What are the advantages to buying a sponsor apartment in New York City? What are the negatives to buying a sponsor unit co op? What are some nuances to calculating transfer taxes owed for a sponsor sale coop? We'll teach you everything you need to know about buying a sponsor unit in NYC. When it comes to multifamily real estate investment, rent-stabilized housing can be an under-appreciated asset in the right circumstances. With 40 years of lending to buyers in New York City, NCB is the bank for co-ops. See morePros of buying a sponsor unit in NYC. 405 215 E 24th Street New York, NY 10010. Buying a new development condo can take about 20 weeks from the initial search to closing. This amounts to about 2 percent of the property price. Deal of the Week; Most Popular; Open Houses. branch and doing business in New York State; 1. Due to a change in state law, the Cooperative and Condominium Property Tax Abatement has changed for tax year 2022-23 (which begins July 1, 2022) and subsequent tax years. 2. Submit the Board Application Package. If you’re looking to buy a home in the competitive real estate market of Manhattan, a sponsor unit might just be what you are looking for. Find rego park properties for sale at the best price. There's lots of new development in West Chelsea, including One High Line, which opened this year and has a one-bedroom sponsor unit for $2. Regardless of whether you buy from the sponsor or from someone selling a unit, what you get in a coop is the same. , managing partner at Woods Lonergan PLLC, a Manhattan-based law firm that concentrates on real estate and in particular, buyer, seller, and cooperative and condominium representation. The building has a live-in super and a private courtyard, and is close to Montefiore Hospital, making it a good spot for medical residents. That’s because buyers are expected to pay city and state transfer taxes on co-op sponsor sales. 2 beds. You’ll need to know how much you can afford or want to spend before starting your search. 98-120 Queens Boulevard, Unit 4G. most of the time, you become like other unit owners. How buying real estate in NYC is unlike anywhere else. 10% of annual maintenance (1st year) 20% of annual maintenance (2nd year) 25% of annual maintenance (3rd year) Annual sublet renewal fee — many coops in NYC will charge shareholders an fixed ‘annual sublet renewal fee’. National Cooperative Bank offers competitive rates and easy pre-qualification. SPONSOR UNIT with NO Board Approval and only 10% down! This spacious and sun-drenched unit features a beautiful. 814 Amsterdam Avenue, New York, NY. Unfortunately, the same could be said of buying real estate in New York City: It’s different here. If you plan on financing, you should start looking at lenders and obtain a mortgage preapproval. Financing Contingency. As CityRealty data shows, condos in New York's Downtown neighborhoods are in hot demand. From offer to signed contract takes five to 10 days depending on the market. The sponsor is selling 2 similar studio units for $565K and $575K, without Board approval. Frigidaire FFRE053WAE window-mounted AC, Amazon, $209. If the former, I don’t think it's possible to buy just one unit. सुने NYC Sponsor Units - What You NEED To Know और seventy-nine अधिक एपिसोड Real Talk NYC Real Estate द्वारा, मुफ्त!. You may also be able to negotiate on the deposit for the unit. Part of a larger network of over 200 Food Scrap Drop-off sites in NYC, the GrowNYC Compost Program currently. 84-70 -th Street #4S, Kew Gardens, NY 11415. Or in the case of a co-op, it is owned by the original owner or the corporation that originally converted rental units into co-ops. Condominium buyers acquire. 425% for sales of $500k or more. 9% for properties purchased for $25,000,000 or greater. 2. For example, a two-bedroom apartment may hold 250 shares in a cooperative, while a one-bedroom apartment expresses 150 shares. A buyer who wants to reside in the building but does not want to own an apartment held by someone else directly might purchase the sponsor unit (direct ownership). experienced brokers and they are ready to help you buy or sell your piece of NYC real estate. There are currently 79 condos for sale in Rego Park, Queens, NY to browse through, with prices between $150,000 and $1,875,000. Buy Open Buy sub-menu. A sponsor unit is a type of apartment unit, typically found in condominiums (condos) and co-ops. NORWOOD, BRONX: We like the look of the kitchen in this fully renovated one-bedroom co-op—note, a sponsor unit—which boasts cherry wood cabinetry, granite countertops, and a dishwasher. So, instead of buying your new apartment from the prior owner, you are buying it from the original developer or corporation who made the building. 4% to 2. Buying from Sponsor Transfer taxes and seller’s attorney fees become the responsibility of the buyer when buying a sponsor unit. 81-05 35th Avenue UNIT 1J, Jackson Heights, NY 11372. Exceptions include sponsor units that were held aside by. Sometime you can buy unsold shares from the sponsor and keep unit as an investment property (vs. Unlike market-rate units, annual rent increases for rent-stabilized apartments are capped, so if landlords with these types of units raise rents at lease renewal time, they are limited to increases of a few percentage. Aren’t New Developments Technically Sponsor Units? New developments are technically sponsor units, but NYC brokers don’t refer to them as such – they’re just called new developments. It's located in 11415, Kew Gardens, Queens County, New York City, NY. That equates to $875 per month in common. M. Sponsor Units NYC, New York, New York. 004 percent of the purchase price (which equals $4 per $1,000 of purchase price). Obviously it’s a no-brainer, if you can afford it. Title Insurance: $0. Blog; Forum; Calculators; Shop Menu Toggle. 25 million. I was in contract for a $450K studio but then Board declined my application. Billionaires’ Row is a bust. The lowest rate of 1% applies to purchases at or above $1 million and less than $2 million. The difference between these three is important to know when. The sponsor is selling 2 similar studio units for $565K and $575K, without Board approval. 📅 Stay informed and up to date with what is going on in your city - whether or not you are ready to start a real estate transaction, the information we provide can help you make smart decisions. Listing by Douglas Elliman. The most significant difference between buying a co-op and a condo is the ownership structure, says James Woods, Esq. For buyers purchasing a. If you can afford it, yes. Among more than 16,200 new condo units built since 2013 in New York City, roughly 4,100, or one in four, remain unsold. The exact amount will be dependent on the interest of each owner, in addition to the total assessed amount and the duration over which the assessment must be paid. Regardless of whether you buy from the sponsor or from someone selling a unit, what you get in a coop is the same. — sq ft. The ELIKA Team. The sponsor is simply the developer or builder of a new construction or re-development project. Main Menu. Co-op in Forest Hills. How buying real estate in NYC is unlike anywhere else. 62-54 97th Pl Unit 14B. Tudor City homes for sale. 2. This model allows prospective first-time homebuyers to enter a rental agreement or lease (‘rent to own contracts” or “rent to own lease”) with a property owner for a specified lease term, and this term is typically anywhere from one to three years. Buyers will almost always request that the sponsor remove the second kitchen during the course of construction. 825% for the transfer taxes and $2000-3000 for. They often lack amenities other than a doorman, which means you usually pay lower maintenance fees. If you're a townhouse buyer looking to gain some extra square footage, and don't need the income from rental units, you should begin the process of conversion by hiring an architect to draw up plans for turning the property into a single-family. If the sponsor owns 22-25 units and they are larger than the others, the sponsors share allocation might actually be greater than 50%. Repair Allowance. Sponsor unit - no board approval required. In NYC real estate, a listing labeled “sponsor unit” means that the apartment is on the market for the first time. The new rates start at 1% beginning with properties of $1,000,000 or greater and gradually increase to a maximum of 3. NMLS #507535. 9% for sale prices of $25 million or more. Buying a Sponsor Unit. NORWOOD, BRONX: We like the look of the kitchen in this fully renovated one-bedroom co-op—note, a sponsor unit—which boasts cherry wood cabinetry, granite countertops, and a dishwasher. There are many advantages as well as considerations to buying a sponsor unit in NYC. There are a number of different types of coop sublet policies in NYC. The earlier you have this, the better. Sold 10/31/22. The coop foreclosure process is much faster than the foreclosure process for condos, houses and other real property because lenders do not need to go to court for a judgement to be able to seize and sell the property. 65% on sales from $3m. Established in 2011, the GrowNYC Compost Program strives to make composting second-nature for all New Yorkers by operating residential Food Scrap Drop-off sites and partnering with community composting facilities to make compost locally. According to the StreetEasy Data Dashboard, as of November 2022, the median asking price for a home in each. Co op rules and regulations in NYC can be extremely onerous for residents. The NYC Mansion Tax consists of 8 individual tax brackets. John Gasdaska and Jonathan Conlon are expert, experienced brokers and they are ready to help you buy or sell your piece of NYC real estate. Note that the 90-day period can be extended, so you don’t have to rush the negotiation. Since a loan on a co-op apartment is not technically a mortgage, a bank can conduct a foreclosure sale under Article 9 of the. For more information, call 347-846-2421. Why? Because anyone with good credit, who can get a mortgage, the specified down payment and enough reserve funds. Listing by Alexander Madison Realty Inc. View property. If you're buying a NYC apartment, there are basically three main types of situations that generally warrant a professional home inspection, says Stone. In addition to the NYC transfer tax, New York State also applies a transfer tax on all properties sold within the state. Extell's rent-to-own offering allows you to credit a year of rental payments towards a condo purchase if you buy within 12 months. My question is, doesn’t everyone in the building, shareholders and sponsor units alike have to adhere to the house rules and any fair a… What are the pros and cons of buying a sponsor unit in a co-op?. 2. If price > $499,999 then 1. National Cooperative Bank offers competitive rates and easy pre-qualification. A grown child buying an apartment for a parent presents some unique challenges. In a co-op, a sponsor unit is owned either by the original owner or is one the co-op corporation converted from a rental. ) Here are a few major things the board will look at. Price cut: $100,000 (Nov 8)Determine your closing costs in advance when buying a condo, co-op, or home in NYC. Thank you sharing your experience. It has a four-and-a-half star rating with 1,202 customer reviews. The benefits of buying into a. 425% of the purchase price if it’s under $500K. Rising interest from overseas investors should put homegrown NYC buyers on alert. Business, Economics, and Finance. “A tenant. This flip tax is still under the average 1%-2% for most NYC co-ops over $500k. NYC Mansion Tax: $17,500. What constitutes the “procuring cause” under REBNY buyer representation rules in NYC. Midtown East | Cooperative | 2 Bedrooms, 1 Bath. 4, 2013. A sponsor unit differs from other units in that it has never been sold before. As a result, sponsor unit transactions can close faster with less hassle, although there are extra closing costs to consider during offer negotiation. Still, the apartment has a large living. 2 million, and he paid $5,027,609 when the deal finally closed on Dec. 425%. ” What's Next? As with anything that involves a major investment or purchase, it's important for the potential buyer of a. If you’re interested in purchasing an apartment in a condominium building and wondering how to do it, this comprehensive guide will walk you through the process. These apartments are sold by the building’s owners or the corporation that established the co-op, and you get to skip the dreaded co-op board interview, making the process much easier—and faster. This may be negotiable when it is a resale but less so if it’s a sponsor unit. Subletting a sponsor-owned apartment is much simpler. NYC Real Property Transfer Tax, $ If price $499,999 then 1%. All Rentals. 65% on those valued over $3 million. setting himself a positive precedent by buying a sponsor unit for $4. I also understand that sponsor unit condos can come with significantly higher closing costs due to the transfer taxes and mortgage taxes. Also, some co-ops and condos management boards will not let a unit go for under what they deem an exceptable threshhold (they have the option to buy the unit themselves and then resell it). ∙ 4 Sadore Ln Unit 1Y, Yonkers, NY 10710 ∙ $340,000 ∙ MLS# H6260960 ∙ SPONSOR UNIT with NO Board Approval and only 10% down!sponsor unit means you are the first to have bought that unitYou bought it from the developer as opposed to a previous owner. The New York Times, 620 Eighth Avenue, New York, N. Listings from Canal Street to West 30th Street are selling at a median price of $2,010 per square foot, with Noho having the highest median prices ( $5. in rare instances, the offering plan allows an investor to purchase bulk and retain sponsor privileges. First time home buyers will often be confused by the term ‘sponsor’ as it relates to buying a sponsor unit in NYC. Houses for Rent. Buying a sponsor co-op means that you’re exempt from co-op board approval, and you can forgo. See more ideas about nyc, home buying, closing costs. 110-15 71 Road #2E. 4 percent state transfer. I said 50% of shares and OP said 50% of units. coop . The New York City Mansion Tax starts at 1% for purchases on/above $1 million and below $2 million. , 75 Wall Street, and Greenwich West at 110 Charlton Street. Pros of buying a sponsor unit in NYC. Here's why these units can be advantageous for NYC buyers. New York City developers and investors are seeing an uptick in bulk condo deals, thanks to an already soft market and coronavirus-related distress. 4% for sales under $3 million. Top podcasts; Episodios; Podcasts; Iniciar Contraseña; Registrarse;. Rising interest from overseas investors should put homegrown NYC buyers on alert. , between Broadway and Amsterdam Avenue, has high ceilings, a windowed kitchen, a windowed pantry and a new bathroom. Online searches for sponsor co-ops, which are. Department of Housing and Urban Development’s AMI, set to create affordable housing options in specific areas. You are not truly buying the property. The gut-renovated apartment has recessed lights with dimmers, but its northwest-facing. Its iconic skyline is a testament to human ingenuity, ambition, and the relentless drive for…. The median price for a two-bedroom apartment in Midtown East is $1,850,000, based on current listings on StreetEasy. By CityRealty Staff Thursday, August 26, 2021. 425 to 1. Unfortunately, since the 421a tax abatement program got a major makeover in 2016, new developments with this type of abatement will become. 72% per year, or $7,200 per year according to average NYC property tax rates discussed in our article on NYC real estate taxes. The attraction of buying a furnished sponsor unit is that the furniture has been selected by a professional designer and has not been used by anyone else. (OneKey® MLS as Distributed by MLS Grid) For Sale: 2 beds, 2 baths ∙ 1200 sq. 5. And lastly, many condos in New York City enjoy tax abatements. Y. The apartment was listed back in November, which is the first time the apartment has been. , #4A, saw its price drop a couple weeks ago by $35,000, bringing the asking price to $845,000, which is just slightly north of the median for a two bedroom in the neighborhood, per StreetEasy. A special category of apartments in New York City are called “sponsor units. For Residential 1-3 family homes, condos, and co-ops the New York State transfer tax rates are as follows: Let’s say you purchased a new development condo for $1,000,000.