Sponsor Sales: Offering-Plan Obligations and Building-Specific Rights
Sponsor Sales: Offering-Plan Obligations and Building-Specific Rights
Verified Baseline
The New York Attorney General states that its regulations govern offers and sales of cooperative and condominium interests. Sponsor sales are made under an offering plan, and the Real Estate Finance Bureau reviews offering plans for compliance with the Attorney General's regulations, Article 23-A of the General Business Law, and other applicable laws.
The offering plan controls the sponsor's stated obligations concerning the property. A material representation not clearly contained in the plan or purchase agreement should be put into a written agreement between purchaser and sponsor.
Correction to the Former Article
There is no universal seven-day Martin Act rescission period for every sponsor-unit purchase. Any rescission right must be identified from the applicable law, offering plan and amendments, purchase agreement, and transaction facts. Do not advertise one unless counsel confirms it in writing.
A sponsor or holder of unsold shares may have building-document rights concerning board approval, transfer, or subletting, but those rights are not universal. The proprietary lease, offering plan, amendments, and chain of title determine the actual status and rights.
Seller Protocol
Before marketing, have counsel identify the seller's legal status, retrieve the accepted offering plan and all relevant amendments, and prepare a written list of continuing disclosures, purchaser protections, escrow terms, approval requirements, representations, and closing conditions.
Check the Attorney General's Real Estate Finance Database for filing and amendment information. Put every material marketing promise into the contract or a signed rider approved by counsel. Do not rely on an old offering plan to describe current building condition without current diligence.
Sources
- New York State Office of the Attorney General, Before You Buy a Co-op or Condo, fetched and read 2026-08-07.
- New York State Office of the Attorney General, Real Estate Finance Database, fetched and read 2026-08-07.
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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