Today’s interview comes from someone who has been instrumental to my own journey – my real estate lawyer, Jean L. Chou of JLC & Associates. I found Jean via a Yelp review five years ago when Mr. Savemycents and I bought our co-op in Manhattan. As I joke at the time, that process was when I grew my first white hair. Of all the professionals I worked with, I make it no small secret that Jean was my favorite. She was objective, professional, prompt, and thoughtful throughout. She did a full and thorough legal diligence on the co-op that we bought. She answered several questions we had throughout that were related to legal terms we found in our mortgage agreement. She was a calm voice in the storm. I asked Jean to sit down with me virtually to discuss her observations of buying real estate in New York and her advice for you all.
Tell me about yourself Jean! How did you decide to focus on real estate law? Why did you decide to practice in New York City?
I’ve always had a passion for real estate. It’s a tangible asset that is often involved during milestone events in our personal lives (new moves, relocation, business expansions, new friends, new families, separations, etc.). I worked for a real estate developer during law school and found it fascinating how he was able to identify opportunities and had the ability to transform an idea into a final product that consumers wanted. New York City is probably the best place for real estate in my opinion. It’s one of the most diverse and international communities with constant development.
I got to know you, Jean, personally through purchasing a home in 2015. How has your practice evolved since that time?
It’s been 5 years since! Since then my practice has evolved into much more of a “team” structure and into more than just a transactional law firm [Shang’s note: e.g., not just helping with buying and selling], though that is still our main bread and butter. We now represent clients in many of the “offshoots” of a real estate closing, including renovations/interior design, coop/condo board representation, business advisory and commercial leasing. Personally I’ve also learned a lot as a business owner that the people who join the team are the most important for our firm growth and client satisfaction. That also means that I have to continue to grow as a leader, personally and professionally which is never an easy task.
I’d love to talk specifically buying residential real estate in New York City. What do you see are unique challenges to purchasing in this location?
Most of our clients are buying in Manhattan, Brooklyn and Queens and the toughest challenges, though perhaps not unique, are the cost of real estate and at times, the lack of transparency relating to management of buildings. New York City is one of the priciest cities for real estate and there are a lot of moving parts but things move quickly, so it requires us as the lawyers to be moving quickly, efficiently and diligently which can feel intense for new buyers.
What are some of the most common misconceptions people might have about purchasing real estate in NYC?
That it’s “easy” or “straightforward.” That’s not to say that it isn’t but some new buyers especially are often surprised by the breadth of information a coop or condo board and a lender may request or how many townhouses are not built to code. NYC is very much a “buyer beware” real estate community, so buyers bear almost all of the risk when purchasing.
[Shang’s note: When I bought, my co-op interview required 2 years of financial information from me and Mr. Savemycents including tax returns. We printed them out and used sharpies to black out our social security numbers. There were no contigencies in our offer and no inspection. And we prepared a lot for our co-op interviews. This is considered standard in this market. Hence, me growing a white hair.]
Can you tell me what might be some tricky things that people should anticipate navigating when buying a home?
The management company, the due diligence of a building and this is where a buyer significantly relies on his or her team – from the broker, to attorney to the lender.
[Shang’s note: For further context, most properties in New York City are not single family homes. They are condos, coops, and thus are part of a collective building that is managed usually by a management company as well as a board. This is where legal advice from Jean is important because it helps you figure out if the building you’re buying into is stable in terms of finances and operations.]
What do you wish people could do more of, to prepare themselves for a smooth real estate transaction?
Speak to a lender, broker and attorney ahead of time! Don’t always trust your google searches. While helpful for background, there is also incorrect information online at times.
[Mr. Savemycents and I called lenders before we started looking. We also had a call with an estate lawyer at the time. We got our broker and lender relationships set up around the same time and if you can move quickly and are pretty sure you will buy, lock in your lawyer too]
Is there anything else you think my audience should know?
It’s never too early to get in touch with a professional! Get your team in place ahead of time so there is time to plan.
Thank you Jean for sharing your wisdom with us! Please don’t hesitate to check her out at https://www.jlc-law.com/
