Standard Operating Procedures for Prospective Homebuyers

Pursuant to New York State Real Property Law §442-H, Society Estates Inc. hereby adopts the following Standard Operating Procedures regarding the prerequisites that prospective homebuyers must meet prior to receiving services from our brokerage or any of our associated real estate licensees. These procedures must be implemented uniformly with respect to every prospective buyer across all five New York City boroughs.

Section 1: Mandatory Pre-Service Prerequisites (RPL §442-H)

• Prospective Buyer Identification: Society Estates Inc. does not require prospective buyers to provide photo identification or personal identification to begin working with a licensee or to view properties. Exception: Licensees must inform buyers that individual sellers, building management, co-op/condo doormen, or developers may require identification prior to granting property entry.
• Exclusive Broker Representation Agreements: Society Estates Inc. does not require a prospective buyer to sign an exclusive buyer representation agreement as a mandatory condition to receive general services or browse properties.
• Pre-Approval / Proof of Funds: Society Estates Inc. does not require a prospective buyer to provide a mortgage pre-approval letter or proof of funds prior to receiving general services. Exception: A licensee will request a pre-approval or proof of funds if a specific seller mandates it before accepting home tour requests or reviewing purchase offers.

---

Society Estates Inc. – NYC Home Buyer’s Guide & Workflow

This section outlines the compulsory transaction workflow that all licensees of Society Estates Inc. must follow to ensure full adherence to New York State agency laws, anti-discrimination regulations, and professional NYC standards.

Phase 1: NYC Compliance & Contractual Onboarding

• NYS Agency Disclosure (RPL §443): Licensees must provide and explain the NYS Disclosure Form for Buyer and Seller at the first substantive contact. Licensees must obtain a signed acknowledgment of receipt. If a buyer refuses to sign, the licensee must document the refusal in a detailed, date-stamped file memo.
• Written Tour Agreement (NAR & DOS Mandate): Prior to conducting an in-person or live-virtual property tour, the licensee and buyer must execute a written buyer agreement. The agreement must explicitly and conspicuously state that real estate commissions are fully negotiable and not set by law. It must outline the exact compensation structure, scope, and duration before any home is shown.
• NYS & NYC Fair Housing Mandates: Provide the prospective buyer with the mandatory NYS Fair Housing Notice at the first substantive contact. All consumer interactions must strictly align with federal, state, and local fair housing regulations, including the NYC Human Rights Law, which explicitly prohibits discrimination based on lawful source of income (e.g., Section 8 vouchers, housing subsidies).

Phase 2: The NYC Property Search

• Listing Source Navigation: Set up customized property notifications utilizing the local primary database (RLS/REBNY portals, OneKey MLS, or specialized NYC property feeds) according to the buyer’s search parameters.
• Targeting the Right Property Type: Educate the buyer early on the distinct operational and financial differences between purchasing a Cooperative (Co-op) versus a Condominium (Condo) or a Fee-Simple Townhouse.
• Pre-Screening Building Financials: For co-ops and condos, confirm the building’s specific minimum down payment requirements (typically 20% to 50% for co-ops) and check for any active building-wide assessments or pending maintenance/common charge hikes.

Phase 3: Structuring the Offer & The NYC Legal Process

• Prepare the REBNY Financial Statement: Require the buyer to complete a standard REBNY Financial Statement. In NYC, an offer is rarely taken seriously by a listing agent without a fully detailed breakdown of the buyer's liquid assets, liabilities, and post-closing liquidity.
• Submit a Formal Offer Package: Email the formal offer to the listing agent alongside the completed REBNY Financial Statement and the lender pre-approval letter or proof of funds.
• NYS Attorney Contract Custom: Once an offer is accepted, the seller’s attorney drafts the Contract of Sale. The buyer’s attorney performs intensive due diligence, including reviewing the building's financial statements, offering plan, and board meeting minutes. Licensees must never draft the sales contract; their role is to facilitate communications between the respective legal counsels.

Phase 4: Board Package & Under Contract Management

• Escrow Deposit: Monitor the delivery of the 10% contract deposit into the seller’s attorney’s specialized IOLA escrow account upon contract execution.
• Strict Compliance with NYC Local Law 58 of 2026 (Co-op Deals Only):
  • 15-Day Acknowledgment: After submitting the completed co-op board package to the managing agent, the board has 15 calendar days to confirm in writing that the file is complete or explicitly list missing items.
  • 45-Day Decision Boundary: Once the application is marked complete, the co-op board must issue a written decision (approval, conditional approval, or denial) within 45 calendar days. Fines apply to buildings that fail to comply with these statutory timelines.