Lita Mast
Cooperatives & Condominiums

    While most of the basics of buying or selling are the same, there are certain differences to note:
      BUYING

The rules and regulations governing your intended home must be thoroughly reviewed by you, and the financial information must be reviewed by your accountant or attorney.

The additional monthly or yearly carrying charges associated with these forms of ownership must be investigated and calculated into your ability to own the home. Also, is there a prohibition on renting? If not, is there a cap on the amount of time you can rent (three of five years, for example), and/or a limit on how many units can be rented at any one time? Will there be a move-in and move-out fee charged each time you obtain and lose a Tenant? Another important note: if you pay cash for your home, do the regulations prohibit financing if you choose to at a later time?

Co-ops:   You do not own the home, but rather own shares of stock in the corporation that "leases" you the unit. Thus, you (and anyone you choose to sell to later on) must be approved by the Co-op Board.

Condos:   You do receive a Deed to the home, along with an undivided share of common areas. If amenities (pool, clubhouse etc.) are not yet completed, you always run the risk that they may not be.

Home Owners' Association:   You do receive a Deed, and usually also have some claim of ownership to a greenbelt, beach, dock or the like. Be sure to thoroughly understand what participation entails, as these Associations are almost always mandatory.
 
Click here for a Pre-Contract Checklist for Buyers
 
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      SELLING

Check to be sure that your board does not have the initial right to buy or right of first refusal. If this does not apply, or is waived, inquire as to what procedure (if any) a Buyer needs to go through to be approved. Many Boards may only meet once a month, so this time frame must be considered when setting a closing date.

All maintenance or carrying charges must be paid in full, and all assessments must be paid up to the date of closing. Proof of such good standing is required at
closing.

Original documents must be surrendered: Offering Plan, Amendments, Proprietary Lease (co-op), Stock Certificate (co-op).

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NOTICE: This web site and all information contained herein are for general purposes only and should not be relied upon as complete and/or specifically tailored to an individual transaction. Lita Smith-Mines is not responsible for the contents/accuracy of any links to/from this site, and this web site is neither a substitute for legal counsel nor a solicitation: you are urged to personally consult with an attorney of your own choosing.
 
©2007 Lita Smith-Mines, P.C.

Co-Op's & Condos