NYC Offering Plans: What the AG Actually Checks (Not Much)
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An offering plan is the disclosure document a condo or co-op sponsor must file with the NY Attorney General under the Martin Act (Article 23-A) before selling a single unit. The AG’s review checks that it’s complete, not accurate. Buyers still need to read the parts that affect real risk: special disclosures, sponsor rights, and budget assumptions.
We see buyers treat “filed with the AG” as a stamp of approval. It isn’t one, and understanding that distinction is most of what actually matters here.
Filed with the AG does not mean approved by the AG.
What is an offering plan, really
Under the Martin Act, General Business Law Article 23-A, every condo sponsor must first file an offering plan. No offering, advertising, or sale can happen before that. It sets the
building’s ownership structure, sponsor rights, purchaser obligations, use restrictions, budget assumptions, and governance framework.
| Building type | What the offering plan actually covers |
|---|---|
| New condo development | Full disclosure: budget, sponsor rights, engineering report, unit pricing |
| Condo conversion | Same requirements, plus tenant protections during conversion |
| Older co-op | Mostly historical; land lease terms and sponsor-retained rights can still matter |
Co-ops file a similar plan, but most are decades old by the time you’re looking at a resale. Much of it is no longer practically relevant, though a handful of original provisions can still bind the building today.
What the Attorney General actually checks, and doesn’t
The Real Estate Finance Bureau reviews a filed plan for completeness: did the sponsor fill in every required section? It does not independently verify that the budget projections are realistic, that the engineering report is thorough, or that the sponsor’s track record is clean. Acceptance for filing means the paperwork is there, not that the deal is sound.
That gap is exactly where a good real estate attorney earns their fee. Our questions to ask your attorney guide covers what to ask before you hire one to review a plan like this.
What actually matters in a new development plan
Offering plans often run hundreds of pages, and most buyers never need to read every clause. A few sections carry real risk. The Special Risks section flags land lease exposure, sponsor control concerns, and unusual legal limitations directly. Sponsor Rights sections answer whether the sponsor retains voting power or unsold-unit control even after most units sell.
Budget assumptions deserve real scrutiny too. As Jason Nazinitsky, a partner at Marans Newman Tsolis & Nazinitsky LLC, explains it, the taxes on Schedule A “only reflect the first year of operations of the condominium,” and the letter accompanying it “may describe how the taxes can make a significant jump in year 2, a detail that is a common oversight by buyers and even their attorneys.” A low year-one common charge estimate can look appealing and still understate what you’ll actually pay by year two.
Watch for a few other patterns too. Unrealistically low projected taxes, optimistic operating budgets, sponsor-shifted closing costs pushed onto buyers, and short-term resale restrictions imposed by some new developments.
What still matters in an old co-op’s plan
Even a plan filed decades ago can carry provisions still in force: land lease terms, sponsor-retained rights, unusual transfer provisions, and the building’s amendment history. The original plan may no longer reflect current reality, but amendments filed since often matter as much as the original document itself.
Who pays, and how do you actually get a copy
In a resale, the offering plan is typically part of the seller’s due diligence materials, not something the buyer separately purchases. If a replacement copy is genuinely needed, cost and process vary by building.
In practice, buyers rarely go digging through AG records themselves. The fastest route is typically through counsel or the listing side: your attorney, the listing agent, or the building’s managing agent. Public AG filing databases exist, but they’re rarely the most efficient path when you’re already mid-transaction.
Our pillar guide to due diligence covers what else to verify before you sign. Looking to actually submit an offer on a property? Our offer form guide covers that separate process. Once you’re under contract, our NYC closing costs calculator and buyer rebate help you plan the rest.
Common questions
What is a sponsor unit in NYC? A unit still owned by the original sponsor of a condo or co-op conversion, rather than an individual owner. Sponsor units can carry different rights and fewer board restrictions than owner-purchased units.
Is a condo offering plan the same as a co-op offering plan? Both are Martin Act disclosure filings. Co-op plans are usually much older by the time you see one in a resale, with far less of the original document still practically relevant.
What is the Martin Act? New York’s General Business Law Article 23-A. It requires sponsors to file a detailed disclosure document with the Attorney General before offering condo or co-op units for sale.
Does AG approval mean an offering plan is a good investment? No. The Attorney General’s review confirms the plan is complete, not that its projections are accurate or that the building is a sound purchase. That evaluation is your attorney’s job.
Where can I find a building’s offering plan? Ask your attorney, the listing agent, or the building’s managing agent first. Public Attorney General filing records exist but are rarely the fastest source once you’re already in a transaction.
Nicole Fishman Benoliel co-founded NestApple in 2017. She's a lawyer admitted to the New York bar - her law degree is from La Escuela Libre de Derecho in Costa Rica, with further study at IE Business School in Madrid and an LLM from Fordham in New York. She does not act in a legal capacity at NestApple; every client is referred to an attorney who handles real estate deals full time.
