Miscellaneous

What are the rules for co-op housing?

What are the rules for co-op housing?

Though co-ops must abide by laws governing fair housing, they can be more restrictive when it comes to ownership requirements. In addition, the rules for buying shares in cooperative housing are set by the members because co-op apartments don’t have landlords.

Who are the owners of a co-op apartment?

Some might argue that reaction is a bit overblown. Others, not so much. Unlike in a house or a condo, co-op residents are not owners of their units, but shareholders of a single corporation. Some people can’t wait to get in one, and some can’t wait to get out.

Can a co-op condo be sold under a LLC?

“The big concern in a co-op is that owning under an LLC could potentially allow you to circumvent their right to approve potential sales or sublets. Co-ops have the right to say no to sales or sublets,” Wagner explains.

Is it possible to buy a co-op in NYC?

It’s the story of a a first-time co-op buyer in Prospect Heights, who after her experience, says she will never purchase property again. Now an inveterate renter, her family of four has moved three times in the last seven years, from Park Slope to Windsor Terrace to Kensington—where they now live in a rent-stabilized two-bedroom apartment.

What happens when you buy a co-op apartment in NYC?

When buying a co-op apartment in NYC you are actually buying shares in the corporation that are allocated to that apartment and this entitles you to a proprietary lease. When you are buying a condo, you are buying real property – similar to a single-family house or townhouse – that is an actual deeded property that receives a separate tax bill.

Who is the owner of a co-op apartment?

Unlike condominium apartment owners, co-operative apartment owners are technically shareholders of a corporation that owns the entire apartment building. Co-op apartment shareholders are given a proprietary lease that lets them reside in the apartment that they purchased.

Do you need a contract of sale to buy a co-op?

In exchange, the corporation will grant you a proprietary lease to occupy the apartment. Given that buying a co-op is not a traditional real estate purchase, the contract of sale must address different issues than if you were buying a condo unit or house.

Do You Own Your unit in a co-op?

In a co-op, you don’t “own” your unit. You own shares of stock in the cooperative, which allow you to lease an apartment or unit for as long as you own the stock. You’re quite limited as to what you can do to the interior of your unit, but you don’t have to worry about property maintenance, either.

Share via: