Hidden Costs: A Buyer's Guide to Special Assessments in NYC Condos - Peter Zinkovetsky

From Avenue Law Firm – Hidden Costs: A Buyer’s Guide to Special Assessments in NYC Condos explores how unexpected fees imposed by condo boards can impact affordability, financing, and long-term value in New York City’s highly competitive real estate market. This episode guides listeners through the complexities of special assessments and how due diligence—especially with the help of legal professionals—can reveal red flags before a buyer signs on the dotted line.

Special assessments are often misunderstood yet legally binding charges issued by a condo’s board of managers to fund major capital improvements, emergency repairs, or aesthetic upgrades. From roof replacements and elevator modernization to compliance with the Façade Inspection Safety Program (FISP), these assessments can quickly add thousands to an owner’s annual costs. Avenue Law Firm highlights how boards may choose between permanent common charge increases or temporary assessments, often opting for the latter to maintain the illusion of a low-maintenance building—masking financial instability from prospective buyers.

The episode also unpacks how assessments are calculated using each unit’s percentage of common interest, often based on floor area or market value, as outlined under New York Real Property Law §339-I and §339-M. Buyers of larger or high-value units—like penthouses—face proportionally larger obligations. Once a special assessment is approved per the building’s bylaws, it becomes a binding legal obligation. Failure to pay can result in liens or even foreclosure. These realities make it vital to understand a building’s financials, governance, and maintenance history before committing to a purchase.

Listeners will walk away with a detailed legal due diligence checklist including review of the offering plan, bylaws, board meeting minutes, lender’s questionnaire, and annual financial statements. The podcast also features guidance on spotting underfunded reserve accounts, identifying buildings with a pattern of frequent assessments, and reading between the lines of vague building communications. With insight from Avenue Law Firm and founder Peter Zinkovetsky, Esq.—a top-rated NYC condo real estate lawyer whose work has appeared in Forbes, Newsweek, and The Real Deal—this episode empowers buyers to approach their NYC condo purchase with clarity, confidence, and legal protection.

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