Co-op and Condominium Due Diligence Documents

Cost of Due Diligence Documents in Co-op and Condominium Transactions

It is customarily, the responsibility of the seller or seller's broker to obtain the offering plan, amendments and financial statements from the seller and deliver them to the buyer or buyer's attorney. If any of those due diligence items are missing, the seller is usually expected to obtain a copy, at his or her own expense, from the managing agent.

It is customarily expected that the buyer or buyer's lender or attorney pay for any "building questionnaires" that the buyer’s attorney or the buyer’s lender requests from the managing agent. The managing agent or coop may charge a fee for  completing questionnaire.

In "sponsor" transaction, the sponsor is required to provide the due diligence materials to the purchaser. However, some sponsors may charge a refundable deposit fee to ensure that the due diligence materials are returned to the sponsor in the event that the purchaser does not proceed with the transaction.

These procedures are customary practices. Depending on market conditions the cost of due diligence materials may be negotiated between parties.