By Debra A. Estock
Doing Your Due Dilence
Real estate attorney Stephane Zwirn, Esq., of Zwirn Law PLLC, explained the value of the attorney in the transaction. She stressed the importance of doing your due diligence and presenting yourself to the board in the best light.
Zwirn advised that the buyer’s attorney should review at least the past two years of financials in the building, plus the past minutes of the board of directors meetings; examine the offering plan, the bylaws, house rules and other governing documents; and closely review any pending litigation and maintenance arrears to determine if there are any red flags with that property.
“If there is a salsa dancer living above you and there’s not 80 percent carpeting in the apartment, you would want to know that—so the minutes are very important,” Zwirn said.
In her case she prepares a risk assessment memo that documents all the findings and reviews the various pros and cons of living in the building. “It is vital. We have to make sure the building is sound.”
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