Buying a condo in Greenpoint should feel exciting, not overwhelming. Then the offering plan lands on your desk and it looks like an album’s worth of liner notes. If you are eyeing a North Brooklyn waterfront building, that plan holds the details that protect your money and your peace of mind. In this guide, you will learn what an offering plan is, which sections matter most, and how to run Greenpoint‑specific sanity checks before you sign. Let’s dive in.
What an offering plan is
An offering plan is the legal disclosure document a developer files when selling condominium units in New York. It lays out the project’s story in detail, including risks, budgets, building rules, and the sponsor’s rights. This is your primary source of truth about what you are buying and the obligations that come with it.
In New York, the State Attorney General’s Real Estate Finance Bureau reviews offering plans. Sales under a plan can move forward only after the plan is declared effective. Other public agencies also matter to a development, such as the NYC Department of Buildings for permits and Certificates of Occupancy, FEMA and NYC flood tools for flood zones, the EPA or New York State DEC for environmental issues, and the NYC Department of Finance for taxes and abatement programs.
You and your attorney will use the plan to confirm ownership rights, common charges, reserve funds, building rules, developer control periods, and what is included in the unit. For new construction, your purchase contract and the plan work together to set expectations for deposits, interim occupancy, and closing timing.
Sections that matter most
Special Risks
This section summarizes the big issues the developer and Attorney General want you to see up front. For Greenpoint waterfront properties, look for flood risk, storm surge exposure, any environmental cleanup or monitoring, and whether the sponsor can change finishes, layouts, or future building phases that could impact light or views. Note how common charges might rise, how special assessments work, and how long the sponsor controls the board. Flag any referenced studies or reports to review with your attorney.
Project description and unit schedules
Confirm unit dimensions, the square footage method, and how balconies, terraces, parking, and storage are treated. Check the finishes and fixtures list closely so you know what is standard versus an upgrade. If you are comparing marketing materials, make sure listed sizes and layouts match the plan’s exhibits.
Declaration and By‑Laws
These governing documents set up the condo and its rules. Focus on who controls the initial board, how and when that control shifts to owners, and the vote thresholds for decisions that can affect your costs. Review policies on rentals, short‑term stays, pets, and unit alterations, plus how assessments are authorized. Understand the process for renovations, insurance requirements, and whether any rules seem unusually restrictive.
Budget and operating costs
The Estimated Operating Budget shows projected expenses, common charges, and reserve assumptions. Look closely at common charges per unit, the reserve fund, property taxes, and any tax abatements or PILOT arrangements. Be cautious if the budget relies heavily on commercial rent or shows very low reserves with no plan to build them. If taxes or utilities are expected to jump, the plan should explain why.
Sales contracts and escrow
Review how deposits are held, when escrow can be released, and whether interim occupancy could apply. Interim occupancy means you may live in the unit before final closing and pay an occupancy fee. Understand who pays what during that period and when you can walk away if deadlines shift.
Construction, completion, and warranties
Check the expected timelines, the disclaimers about delays, and what warranties cover. See who backs those warranties and how you make a claim. Note any limits on remedies for defects and how disputes are handled.
Material contracts and services
Management contracts and vendor agreements can affect quality and costs. Look for long terms, hard‑to‑terminate agreements, and exclusive vendors. Review any commercial leases that support the building’s budget and consider the risk if those spaces sit vacant.
Financing and building mortgages
See whether the sponsor has a building mortgage and how a default could affect owners. Confirm whether the condo imposes rules on unit owner mortgages and what the approval process looks like.
Amendments and developer rights
Sponsors often reserve rights to amend the plan or adjust the project before the plan goes effective. Understand whether they can add units, change common elements, or convert certain spaces. Know what requires owner approval versus what the sponsor can do unilaterally.
Exhibits and reports
Exhibits include floor plans, site plans, surveys, and any environmental studies. Make sure the plans align with marketing materials. For waterfront sites, look for flood elevation certificates or design notes that show how the building handles water and power in a storm.
Greenpoint waterfront checklist
Developer and project history
- Confirm the sponsor’s name and previous projects.
- Look for on‑time completions and whether warranty issues were resolved.
- Ask your attorney to assess litigation or claims history that may appear in filings or news.
DOB filings and Certificate of Occupancy
- Verify permits, job numbers, and inspections through the NYC Department of Buildings.
- For conversions, confirm a valid CO or an active path to obtain one.
- Check for open violations or stop‑work orders that could delay closings.
Flood risk and elevation
- Identify the property’s FEMA flood zone and Base Flood Elevation.
- Use NYC flood tools to understand local storm surge exposure.
- Confirm floodproofing measures such as elevated mechanicals, flood vents, waterproofing, and emergency plans.
- Ask how flood risks affect insurance requirements and lender approvals.
Environmental legacy
- Greenpoint and Newtown Creek have a known industrial history, including a Superfund area.
- Review any Phase I or Phase II environmental assessments mentioned in the plan.
- Confirm whether site remediation is complete or ongoing, and whether monitoring could affect construction or operations.
- Ask your attorney to evaluate potential liabilities or disclosure gaps.
Taxes, abatements, and affordability programs
- Check the plan for tax abatements or PILOT arrangements and their duration.
- Confirm whether abatements are contingent or guaranteed and how they phase out.
- Make sure projected taxes in the budget reflect realistic assumptions.
Commercial tenants and local context
- Review commercial lease terms that support the operating budget.
- Consider the risk of vacant storefronts and whether residential owners would absorb the shortfall.
- Note nearby industrial uses and potential zoning or infrastructure changes that may affect noise, traffic, or retail prospects.
Comparable buildings and pricing check
- Compare common charges per square foot to recent Greenpoint and North Brooklyn condos.
- Sense‑check interim occupancy timelines and standard buyer deposits.
- Use your agent’s comps to benchmark pricing and budget reasonableness.
Interim occupancy details
- Clarify who pays taxes, utilities, and occupancy fees before closing.
- Ask about insurance during interim occupancy and the timing for final CO and closings.
- Confirm your rights if delays extend beyond stated timeframes.
Insurance and resiliency
- Review the condo’s property and liability coverage and deductibles.
- Confirm if flood insurance is carried by the building and whether unit owners also need policies.
- Look for resiliency features such as elevated utilities, backup power, and stormwater management, and confirm they are budgeted to maintain.
Practical steps and help
- Read the plan summary and Special Risks in full, then list your questions in plain language.
- Verify the sponsor’s identity and the DOB job filings, then review any referenced environmental reports.
- Compare the budget and common charges to two or three nearby completed condos.
- Read the Declaration and By‑Laws, focusing on board control, assessments, and use restrictions.
- Note the turnover threshold that shifts control from the sponsor to owners.
- Confirm standard finishes versus upgrades and how changes are handled.
- If interim occupancy applies, discuss tax, insurance, and cost implications with your attorney.
- For waterfront buildings, verify floodproofing and ask for flood insurance estimates.
Who to bring onto your team:
- Real estate attorney to interpret the plan, review contracts, and confirm protections.
- Buyer’s agent with new‑development experience to benchmark pricing and concessions.
- CPA to review budget assumptions and tax implications if needed.
- Engineer or inspector for resales or conversions to assess physical condition.
- Environmental consultant if contamination or remediation is noted.
- Insurance broker to estimate flood and property coverage.
When to pause or push for changes
- Environmental reports are referenced but not provided or risks are unclear.
- The budget relies on unstable commercial income or shows thin reserves with no plan to build them.
- By‑Laws give the sponsor unusual long‑term control or amendment power that disadvantages owners.
- Escrow or deposit terms allow premature access before critical milestones like a Certificate of Occupancy.
Wrap up
If you read an offering plan like a setlist, you will know where to focus your attention. Start with Special Risks, the budget, and the governing documents. Layer in Greenpoint‑specific checks around flood risk, environmental history, and commercial income assumptions. Bring the right pros to the table early, ask direct questions, and make the sponsor clarify anything that feels vague.
If you want a guide who speaks fluent Greenpoint and keeps the process grounded, reach out to Steve Schaefer. We can line up the right attorney, benchmark the budget against real comps, and negotiate smart so you buy with confidence.
FAQs
What is an offering plan for a NYC condo?
- It is the legal disclosure document filed with the New York State Attorney General that explains the project, risks, costs, and rules for buyers.
Who reviews and approves a condo offering plan in New York?
- The New York State Attorney General’s Real Estate Finance Bureau reviews the plan and declares it effective before sponsor sales proceed.
Why does flood risk matter for Greenpoint condos?
- Many waterfront parcels face storm surge and rising seas, which can affect insurance, lender requirements, and building design and costs.
What should I check in the condo budget?
- Look at common charges, reserve funding, property taxes and abatements, and any reliance on commercial rent that could change.
What is interim occupancy in new construction?
- It is when you move in before final closing and pay an occupancy fee while title transfers later, so ask your attorney about costs and protections.
How do environmental issues near Newtown Creek affect buyers?
- If contamination or remediation is disclosed, your attorney should review the reports to gauge liability, monitoring, and potential delays.
When do owners take control from the sponsor?
- The By‑Laws set a turnover threshold based on units sold, after which owners elect the board and assume governance.
Can I negotiate a sponsor unit in Greenpoint?
- You can negotiate price, upgrades, and some contract terms, but plan provisions that govern all buyers are typically not negotiable.
