Home Buying in New York>Question Details

leunglan, Home Buyer in New York, NY

I want to buy a co-op with cash, should I put the full amount in my bank and write the check when closing , can I do half in "cash" and half in check

Asked by leunglan, New York, NY Sat Aug 4, 2012

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I would think twice about carrying that much cash around. No-one will acept a personal check at closing for the purchase, only for small incidentals. Your attorney can best advise you on how to go about the payment in the most beneficial manner. Good luck.
1 vote Thank Flag Link Sun Aug 5, 2012
Keep in mind that the amount can take several days to clear in your account and be sure to make that clear in your offer
Really it doesn't matter whether you do half check half cash just be certain to document everything.
Best of luck
1 vote Thank Flag Link Sat Aug 4, 2012
If the co-op board does not require you to put down a mandatory amount, or you'd simply prefer to put down more, you should speak with your accountant first. Sometimes you are entitled to certain tax deductions depending on how much you put down, and the form of payment used. As stated in the previous reply, do not bring that much cash, and definitely use your attorney's escrow account to make payment. Good luck and congratulations on your purchase! If you have more questions please feel free to contact me.

Corinne Furlong
Metropolitan Property Group
(631) 879-3539
corinne@metropolitanpropertygroup.com
0 votes Thank Flag Link Mon Aug 20, 2012
You need to put a down payment into escrow when you sign a contract; that can be a personal check to your lawyer's escrow account.

At closing, you will need a cashier's check for the balance due.

If you show up with a suitcase full of hundreds, you'll just freak everybody out. ;)

If you need a recommendation for a lawyer to talk to, or if you're actually looking to be a cash buyer in a co-op, I'm a licensed agent with Prudential Douglas Elliman and can help you with either one or the other (or both).

Send me an email and we can talk about it.

-Kate-
renee0131@aol.com
0 votes Thank Flag Link Mon Aug 20, 2012
You need to consult with a real estate attorney. Why would a seller accept "cash" at a closing.? A bank check is still considered cash. If you are not getting a loan you are paying "cash"

Unless you are buying a sponsor coop unit rather than a resale the source of the money needs to be documented and tax returns are still required. The fact that you have cash, unless it's being transferred from another institution, brokerage account or gift it will be a red flag to the coop. The board will require 3 -6 months bank statements. They will see deposits.

Many coops actually prefer a buyer to have a coop loan rather than spending all their assets on the purchase. When a shareholder has a coop loan, the lender also agrees (Recognition Agreement) to pay the coop their maintenance if the shareholder/borrower is in arrears.


Mitchell Hall
Lic. Assoc. R.E. Broker
Corcoran
2253 Broadway
New York, NY 10024
office 212.877.6268
fax: 212.230.4244
iPhone: 917.312.0924
MHALL@Corcoran.com
0 votes Thank Flag Link Sat Aug 11, 2012
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
Contact
It is important to know that although you are buying all cash, the coop board will want to know where did the money come from and want to make sure that you have enough money post closing....
Hope this helps
0 votes Thank Flag Link Sun Aug 5, 2012
Your attorney can better advise, consider a consultation....
0 votes Thank Flag Link Sun Aug 5, 2012
Most title companies won't take cash (due to liability issues). So you will have to bring a cashiers check to closing for the full amount. They will rarely take a personal check excepting for small amounts.
0 votes Thank Flag Link Sat Aug 4, 2012
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