New York State Real Estate Salesperson Licensing Exam

What document provides detailed information about a condo or coop project?

1. Disclosure agreement

2. Offering plan

3. Sales contract

4. Property management agreement

The correct answer is: Offering plan

The offering plan is a critical document that provides comprehensive details about a condominium or cooperative project. It serves as a disclosure to potential buyers, outlining important information such as the project's financial condition, physical characteristics, and any associated risks. It typically includes descriptions of the property, amenities, governing rules, legal rights of the purchaser, and financial data about the condominium or cooperative association. This document is particularly important in New York because it is required by law for all new condominium and cooperative offerings. It ensures that buyers are fully informed before making a purchase decision, detailing the terms of the sale, projected operating costs, and any other relevant factors that could impact their investment. The other documents mentioned also play important roles in real estate transactions, but they do not provide the same level of detailed and specific information about a condo or coop project as the offering plan does. For instance, a disclosure agreement primarily addresses the obligations of the seller concerning the property's condition and any known issues, while a sales contract formalizes the agreement to purchase the property. A property management agreement usually outlines the relationship and responsibilities between a property owner and a management company, rather than specific details about the project itself.