Condo Questionnaires: The Hidden Deal Killer in NYC Real Estate

If you are buying or selling a condo in New York City, you probably expect the hardest parts to be negotiating the price or passing the board review. But there is another hurdle that can quietly kill your deal: the condo questionnaire.

Most buyers and sellers do not even know this document exists until it causes a delay. By that point, the stakes are high. Mortgage approvals are on hold, deadlines are looming, and everyone’s stress level is rising.

What Is a Condo Questionnaire?

When you apply for a condo mortgage, the bank needs to know that both you and the building are financially stable. To do this, the lender sends a condo questionnaire to the property’s management company or board.

This form asks for details about the building’s finances and governance, such as:

• How much money is in the reserve fund

• Whether the building has lawsuits or pending litigation

• How many owners are behind on common charges

• The percentage of units owned by investors vs. residents

• Proof of insurance coverage

In short, it is a financial health checkup for the entire building.

Here is the twist: two questionnaires are usually required.

1. Buyer’s attorneys need one for due diligence to make sure the building is financially sound before the buyer commits.

2. The lender requires a separate one in order to approve the mortgage and issue the final “clear to close.”

That is double the paperwork and double the chances for delay.

Why Do Condo Questionnaire Delays Happen?

Here is the frustrating part. The buyer, seller, and even the lender have no control over how fast the condo board or management company completes these forms. In NYC, where many buildings are managed by busy firms, delays are common.

Some reasons include:

• Slow management companies juggling too many buildings

• Board red tape, where approvals go through multiple people

• High fees, sometimes hundreds of dollars, that need to be paid before the forms are released

• Incomplete records, forcing extra back and forth

How Delays Can Kill a Condo Deal

Real estate moves quickly. If the condo questionnaires are not returned on time:

• The bank cannot issue a clear to close

• The buyer may lose their rate lock

• Another buyer may swoop in with cash while financing is stuck

• Attorneys cannot complete their due diligence, raising red flags

• Deadlines in the contract may be missed, putting the deal at risk

For estate-owned or trust-owned condos, where sellers often want a quick resolution, these delays can feel especially painful.

How to Protect Your Deal

While you cannot control a condo board, there are steps you and your real estate agent can take to avoid unnecessary headaches:

1. Request questionnaires early. Do not wait. Start the process as soon as the contract is signed.

2. Budget for fees. Be prepared to cover the management company’s charge so the forms are not held up.

3. Work with experienced professionals. Attorneys, agents, and brokers who know NYC condos understand which buildings are slow and how to navigate them.

4. Stay on top of communication. Polite but persistent follow-up can sometimes move things along.

5. Explore flexible lenders. Some banks have less rigid questionnaire requirements, and a good mortgage broker can match you with the right option.

The Bottom Line

Condo questionnaires may seem like minor paperwork, but in reality, they can make or break your closing. By knowing what to expect and pushing to get both questionnaires started early, you can save yourself from last-minute surprises and keep your NYC condo deal on track.

 Thinking of buying or selling a condo? Work with a team that knows how to navigate every detail, including condo questionnaires, to protect your deal from unnecessary delays.