Buying a Coop – Real Estate Attorney
Our law firm is experienced representing Clients that purchase Cooperative Units. We will provide you personal and professional representation and guidance at a reasonable and fair price. Please call and speak to our law firm about your Coop purchase today.
A cooperative apartment is different than buying other types of property. When you buy a cooperative apartment, you are buying shares of a corporation – the corporation being the entire cooperative complex, including all units. You also receive a proprietary lease that gives you exclusive possession of your Unit. You must be approved by the coop board in order to move forward with the purchase. Depending on the coop, the coop board may be strict about whether or not you are approved to buy a unit in the coop. The board will request financial and other information, and a formal application process (including an interview) will follow. The Coop Board, like a Condo Board, will also impose rules, regulations, assessments, and generally take care of the many business decisions that the Coop must handle.
When buying a cooperative apartment, it is recommended that you obtain the last three years worth of financial statements from the Cooperative Corporation to make sure that the Coop is financially sound. It is suggested that you have an accountant review the financial statements and provide a professional opinion regarding the financial condition of the Coop.
Cooperative apartments are often good investments and coop purchases and sales are a large share of transactions in New York City and surrounding areas. Normally, the sales price of coops is lower than the price of a comparable condo or house. However, the monthly fee you pay to the cooperative, known as the maintenance fee, is often higher than the monthly fee for a condo.
What Are The Steps To Buying A Co-op Unit?
The first step to buying a co-op unit is to sign a contract of sale and tender the down payment to the seller’s attorney to hold in escrow. Once you have a fully executed contract, you must make an application to the board for co-op approval. The board has a lot of discretion; they can reject a purchaser and they do not have to provide a reason for the rejection…Read More
Can My Board Prevent Me From Selling My Co-op Unit In New York City?
The short answer to that question is yes. Co-op boards have a lot of power and a lot of discretion when it comes to approving a particular sale and they can even arbitrarily deny a transaction so long as the decision is not discriminatory. The board can prevent you from selling to a certain purchaser and prevent you from selling at a certain purchase price and they do not need to provide a reason for the disapproval…Read More
Contact our law firm today and discuss your transaction with a qualified and experienced Real Estate Attorney.
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