Every Manhattan condominium traces back to an offering plan filed with the New York State Attorney General’s Real Estate Finance Bureau. Under the Martin Act, sponsors generally cannot offer condo units until that plan is accepted for filing. For buyers—especially in new development and recently converted buildings—the offering plan is the primary source of truth for ownership percentages, projected common charges, amenity rights, and sponsor exit provisions.
What an offering plan is (and is not)
The offering plan (often called the prospectus or “black book”) can run hundreds of pages. It typically includes the condominium declaration and bylaws framework, unit schedules, projected operating budget, construction or renovation descriptions, floor plans, and disclosures about the sponsor’s financial condition and remaining inventory.
It is not a brochure. If a finish package, terrace square footage, storage cage, or amenity suite is missing from the plan and purchase agreement, verbal promises and renderings usually will not save you. Have counsel read the plan—not a salesperson summary.
Schedule A: common interest controls your economics
Schedule A lists units with purchase prices (or original offering prices) and each unit’s percentage of common interest. That percentage drives:
- Your share of common charges and special assessments
- Voting power in condominium matters
- Allocation of many capital costs after closing
Verify that the unit you are buying matches the Schedule A line and that amendments have not reallocated interests in a material way. In a building facing a facade or Local Law 97 project, a higher common interest means a larger check when assessments land. See our regulations guide for how assessments typically arise.
Schedule B: projected budget vs. reality
Schedule B sets out the projected operating budget and common charges used to market the offering. On resales years later, compare original projections with current financials:
- Have staffing, insurance, or energy costs outpaced the original model?
- Are reserves being funded at the rate the plan suggested?
- Did amenity programming expand without a matching revenue plan?
Common charges that doubled since the offering are not automatically a red flag—but they demand an explanation tied to insurance markets, labor, compliance, or underfunded early budgets.
Sponsor unsold units and board control
If the sponsor still owns a large block of unsold units, governance may remain sponsor-influenced long after the first closings. Buyers should identify:
- Percentage of units still held by the sponsor or affiliates
- Whether the sponsor can appoint board members or veto certain actions
- Obligations (or limits) on the sponsor’s share of assessments
- Rental of unsold inventory and any impact on building character or lender views
Sponsor control is common early in Hudson Yards and other new-development corridors; the risk is deferred maintenance politics and assessment timing that favor unsold inventory.
Amendments change the deal
Offering plans are living documents. Amendments can alter budgets, unit combinations, construction schedules, parking allocations, and sponsor rights. On a resale, request the complete plan plus every amendment. Material amendments buried late in the stack are a frequent diligence miss.
New-development purchase terms to flag
For sponsor contracts, counsel should spotlight:
- Deposit escrow and refund conditions — when deposits are refundable vs. at risk
- Sponsor change rights — ability to modify unit layouts, finishes, or amenities within stated tolerances
- Outside closing dates and extension mechanics — how long construction can slip
- Transfer-tax shift — whether the buyer must pay NYC and NYS transfer taxes normally borne by sellers (often material; see closing costs guide)
- Closing prerequisites — temporary certificate of occupancy, punch-list procedures, and warranty language
Resale buyers still need the plan
Even when you are buying from an individual seller, the offering plan and amendments define the condominium’s legal DNA. Pair the plan with current financials, minutes, insurance certificates, and compliance reports. New York’s resale market does not automatically deliver that package—you must demand it in the contract.
Practical reading order for buyers
- Table of contents and definitions
- Schedule A (your unit’s common interest)
- Schedule B (budget and common-charge assumptions)
- Sponsor description, unsold units, and conflicts
- Declaration/bylaws excerpts on leasing, ROFR, alterations, and assessments
- All amendments, newest first for recent financial changes
- Unit and amenity floor plans against the marketed listing
Frequently asked questions
What is a condo offering plan in New York?
It is the Attorney General–filed prospectus required before condominium units can be offered under the Martin Act. It discloses structure, economics, and sponsor obligations.
Is the marketing brochure legally binding?
Generally no. Rely on the offering plan and purchase agreement. If a feature is not there, assume it is not promised.
Disclaimer: This article is for general informational purposes only and is not legal advice. Offering-plan requirements and contract norms vary by building. Consult a New York real estate attorney before signing any purchase agreement. Manhattan Condos is not a licensed brokerage.