Purchase and Combination of a Coperative Unit

Our client owned a unit in a co-op building and purchased the unit adjacent to him with the desire to combine both units. We worked with the purchaser’s lending institution to pay-off the existing loan on his unit and fund a new loan which would place a lien on both units and give the purchaser additional money to pay for the cost of renovations. The seller continuously adjourned the closing date well past the 30 day right of adjournment. We sent a time of the essence letter in order to preserve our clients’ interest rate lock and commitment letter expiration. The lien search showed an IRS Tax Lien against the seller in the amount of $55,000. The seller did not have any money to pay this lien and needed the proceeds from this sale in order to satisfy the lien. We worked with seller’s counsel and the IRS to procure a pay-off letter for the date of the closing and subsequently the collection of the outstanding balance. We were able to close the transaction prior to the expiration of the commitment letter.

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