Buying a Manhattan Co-op or Condo In “Cash”…What Does It Really Mean


In this buyers’ market when negotiating for a Manhattan co-op, condo or townhouse, having flexibility with regard to the date of closing  (some sellers may want to close later rather than sooner depending on their circumstances)  AND having cash (something I call FLASH) you will surely get you the best deal.

With regard to financing, many buyers and sellers believe that the purchase of a coop, condo or townhouse in Manhattan will either have or not have financing contingency.  But there are actually three options when it comes to the loan financing provision.

The latest version, the co-op contract spells out these options and allows the attorneys to choose one of them. Although the standard condo and townhouse contract forms do not contain a similar provision, an experienced attorney could add it into a rider.

The options are as follows:

#1 Contract contingent upon purchaser obtaining a loan/financing commitment

#2-Contract NOT contingent upon purchaser obtaining a loan/financing commitment, but purchaser may use loan financing to complete the transaction

#3 purchaser may NOT use loan/financing (i.e. must all cash and can’t have a loan)

The existence of #3 is particularly important not only in today’s lending environment, but to leverage maximum negotiability.  When placing an all cash offer the seller will want to know that it is, in fact, ALL CASH and that the purchaser will not even apply for financing.

This post was taken from a tip written by Alex Suslensky, Esq. and published in PDE Title’s Spring Newsletter. PDE Title is a Prudential Douglas Elliman Real Estate company.


  1. Patrick Hospes says:

    Very interesting breakdown, indeed. It is nice to have such information available in one location and some ideas for new and different directions to take to help one stand out.