NEW YORK, NY – Property buyers in Manhattan and throughout New York City face complex legal and financial considerations that require thorough investigation before signing purchase contracts. Manhattan real estate attorney Natalia Sishodia of Sishodia PLLC (https://sishodia.com/what-is-a-due-diligence-review-in-nyc-real-estate/) is providing guidance on due diligence reviews and how these investigations protect buyers from hidden risks in co-op and condo transactions.
According to Manhattan real estate attorney Natalia Sishodia, due diligence is the legal research process conducted after an offer is accepted and before the contract is signed, typically lasting five to seven business days. During this period, attorneys examine building financial statements, board minutes, offering plans, Department of Buildings records, and title documents to verify the property’s condition and uncover potential liabilities. “Due diligence is the buyer’s opportunity to discover problems before committing to a binding contract,” explains Sishodia.
Manhattan real estate attorney Natalia Sishodia emphasizes that skipping this critical review can expose buyers to unexpected assessments, open violations, and financial instability. Attorneys review at least two years of audited financial statements to assess whether buildings operate profitably and maintain adequate reserve funds. Board meeting minutes reveal pending repairs, disputes, and operational issues that may not appear in financial documents but could lead to future assessments.
Attorney Sishodia notes that the due diligence process differs significantly between co-ops and condos due to their distinct ownership structures. Co-op buyers purchase shares in a corporation rather than real property, so attorneys focus heavily on the building’s underlying mortgage, bylaws, and financial health rather than conducting title searches. “Buildings with maturing underlying mortgages or low reserve funds may impose special assessments that significantly increase monthly costs,” she adds.
The firm examines Department of Buildings records to identify open violations, permits, and Certificates of Occupancy. Sishodia points out that uncorrected violations can delay closing because lenders and title companies often require material violations to be addressed before finalizing financing or issuing title insurance. For condo purchases, attorneys order title searches using the Automated City Register Information System to verify clear ownership and identify any liens or encumbrances.
Sishodia advises that common red flags uncovered during due diligence include low reserve funds, pending litigation, frequent maintenance increases, open violations, pending assessments, high debt levels, and unpermitted alterations. “When serious issues are discovered, buyers can renegotiate terms, request price reductions, or walk away from the deal before signing the contract,” she observes.
The attorney highlights that Manhattan’s median sales price for co-ops and condos reached one million one hundred eighty thousand dollars in the third quarter of 2025, making due diligence essential for protecting substantial investments. New York City’s strict building codes, zoning regulations, and complex governance structures create unique risks that thorough legal review can identify and address before closing.
For buyers throughout Manhattan, Brooklyn, Queens, and the broader New York City area, contacting an experienced real estate attorney before signing a purchase contract can help prevent costly surprises and provide leverage in negotiations.
About Sishodia PLLC:
Sishodia PLLC is a Manhattan-based real estate law firm dedicated to representing buyers in co-op and condo transactions, single-family and multifamily home sales, new development acquisitions, and commercial real estate matters. Led by attorney Natalia Sishodia, the firm serves domestic and international clients throughout New York City. For consultations, call (833) 616-4646.
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Email: natalia@sishodialaw.com
Website: https://sishodia.com/
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Company Name: Sishodia PLLC
Contact Person: Natalia A. Sishodia
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Phone: (833) 616-4646
Address:600 3rd Ave 2nd floor
City: New York
State: New York 10016
Country: United States
Website: https://sishodia.com/