Buying a new construction condominium in New York City can be appealing, but the process is filled with legal complexity that many buyers underestimate. Manhattan, NY condo real estate attorney Peter Zinkovetsky of Avenue Law Firm (https://www.avenuelawfirm.com/buying-a-new-construction-condo-in-nyc-5-legal-risks-to-avoid/) explains that new development purchases differ sharply from resales because contracts are drafted by sponsors and often include terms that favor the developer. These agreements can lock buyers into long timelines, unexpected costs, and limited exit rights. Early legal review can help buyers understand what they are agreeing to before signing a binding contract.
According to Manhattan, NY condo real estate attorney Peter Zinkovetsky of Avenue Law Firm, one of the most common issues buyers face is the shifting of closing costs. In many new developments, buyers are required to pay expenses that are typically the seller’s responsibility, including transfer taxes and sponsor legal fees. As outlined in the article, these costs can significantly increase the total cash required at closing and are often not financeable. Peter Zinkovetsky notes that without careful review of the Offering Plan, buyers may not realize the full financial impact until it is too late.
Manhattan, NY condo real estate attorney Peter Zinkovetsky of Avenue Law Firm also points to risks related to the physical apartment itself. Buyers often rely on advertised square footage, but the article explains that the usable space may be far less due to loss factors built into the Offering Plan. As stated in the article, “A unit sold as 1,000 square feet may contain only 750 to 800 square feet of true floor area.” Peter Zinkovetsky emphasizes that these discrepancies are usually upheld as long as they are disclosed, making pre-contract review and independent measurements especially important.
Another key concern discussed by Peter Zinkovetsky is the limited nature of warranty protections in new construction. While buyers may expect broad coverage, the Housing Merchant Implied Warranty is narrow and subject to strict notice rules. Failure to follow these procedures can result in lost rights. The article also addresses the importance of punch lists and escrow holdbacks, explaining that buyers who close without adequate protections may struggle to enforce repairs once funds are released to the sponsor.
Delays are another major risk in new development purchases. Peter Zinkovetsky explains that contracts often lack firm closing dates, leaving buyers waiting years for completion while their deposits remain tied up. The article outlines how anticipated dates are not binding and how force majeure clauses can further extend timelines. Interest rate risk adds another layer of exposure, as even short delays can cause mortgage rate locks to expire, increasing borrowing costs for buyers.
Long-term building governance is also a critical issue raised by Peter Zinkovetsky. During the sponsor control period, budgets may be understated and necessary repairs deferred. The article warns of “zombie condos,” where high rental concentration or unsold inventory can make a building non-warrantable, limiting financing options and hurting resale value. These governance issues can affect buyers long after closing and are often overlooked during the excitement of purchasing a new unit.
Tax exposure represents another area of concern. Peter Zinkovetsky highlights uncertainty surrounding the expiration of the 421-a tax abatement and the restrictive nature of its replacement, 485-x. Buyers who assume a project qualifies may face unexpectedly high property taxes. The article also explains how Local Law 97 introduces potential carbon penalties that can lead to increased common charges or special assessments if buildings fail to meet emission standards.
Taken together, these issues show why careful review matters in new construction condo purchases. Understanding how costs are allocated, how timelines work, and how long-term liabilities may affect ownership can help buyers make informed decisions and avoid surprises after closing.
Buyers considering a new construction condominium or reviewing an existing contract can benefit from legal guidance that focuses on protecting their interests. Peter Zinkovetsky of Avenue Law Firm works with buyers to review offering plans, identify risks, and negotiate contract terms that provide clearer protections and greater certainty throughout the process.
About Avenue Law Firm:
Avenue Law Firm represents clients in New York City real estate matters, with a focus on residential condominium transactions. Peter Zinkovetsky advises buyers through each stage of the purchase process, helping them understand contract terms, financial exposure, and long-term ownership considerations in a competitive and highly regulated market.
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Email: peter@avenuelawfirm.com
Website: https://avenuelawfirm.com/
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Company Name: Avenue Law Firm
Contact Person: Peter Zinkovetsky
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Phone: (212) 729-4090
Address:505 Park Ave Suite 202
City: New York
State: New York 10022
Country: United States
Website: https://avenuelawfirm.com/