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Form of Ownership - Shares in a corporation that owns the building. Proprietary Lease establishes occupancy terms. No recording of a deed or central recording of sale information.
Board Approval - A Group of residents, mostly owners, that have the right to accept or reject applicant owners or tenants. Not appealable. Board may or may not charge an application fee, typical is $200-$500 which is nonrefundable.
Maintenance - Monthly payment that consists of building upkeep, real estate taxes and payment of the underlying coop loan, generally from when the building was converted to a coop from a rental building. In most cases 40% to 60% of the maintenance is tax deductible.
Real Estate Taxes - Included in Maintenance. Some buildings have abatements that do run out and thus increase taxes later on.
Prospectus / Black Book / Offering Plan and Amendments - Outline the terms of the original coop offering and amendments update along with rules of the building.
Financials - Prepared Yearly by outside accountant to determine financial status and profitability of the coop.
Management Company - Outside company that collects maintenance, operates the building, maintains records. Smaller building may be "self managed by the occupants / owners.
Coop Attorney - Attorney responsible for the preparation of closing and transfer documents and legal matters for the coop.
Financing - Certain coops have financing restrictions (down payment minimums, income minimums, etc.).
Sublet / Renting - Generally require board approval. Certain boards do not allow subletting or place limit on the sublet (2 year maximum, 1 year minimum, etc.)
Sale - Certain coops have a transfer fee / flip tax that each coop seller must pay back to the coop upon sale of the unit |
Form of Ownership - Deed that is recorded at the county clerk's. Transferable as any other house or property.
Board Approval - 99% of the time not required.
Common Charges - Monthly payment that consists solely of building upkeep. Generally not tax deductible.
Real Estate Taxes - Each individual owner pays their own on each unit.
Prospectus / Black Book / Offering Plan and Amendments - Outline the terms of the original offering and amendments update along with rules of the building.
Financials - Prepared Yearly by outside accountant to determine financial status and profitability of the condo association.
Management Company - Outside company that collects maintenance, operates the building, maintains records. Smaller building may be "self managed by the occupants / owners.
Condo Attorney - Generally non existent.
Financing - Only restrictions are lender required.
Sublet / Renting - Generally no restrictions.
Sale - No restrictions. Generally no costs. |
Read More About the Pending Coop Board Acceptance Rejection Disclosure Law
This information provided by:
Prudential Action Real Estate - Corporate Services Group
For more information, please email Glen Calderon or Shelly
Irizarry or call (866)
483-4687 x205