CO-OPERATIVE ASSOCIATION CO-OP
A residential multiunit building whose title is held by a corporation owned by and operated for the benefit of persons living within the building, who are the stockholders of the corporation, each possessing a proprietary lease.
CO-OP
A residential multiunit building whose title is held by a corporation owned by and operated for the benefit of persons living within the building, who are the stockholders of the corporation, each possessing a proprietary lease.
PROPRIETARY LEASE
A written lease in a cooperative apartment building, held by the tenant/shareholder, giving the right to occupy a particular unit.
UNDERLYING MORTGAGE
A single mortgage, known as the underlying mortgage, covers the entire building.
MAINTENANCE
This is defined as the general upkeep of a property.
FLIP TAX
A tax imposed by the cooperative on the sale of a unit within said building. This fee can be based on a percentage of the gross sale, net sale, gain, or the number of shares held by the shareholder or a fixed number determined by the cooperative board. Th
FEE SIMPLE ESTATE
Organization of a cooperative as a fee simple estate provides for ownership of unlimited duration by the cooperative corporation.
LEASEHOLD ESTATE
Organization of a cooperative as a leasehold estate provides for ownership with a limited duration determined by the lease term between the cooperative corporation and the underlying landowner. Ownership in this form extends for as long as the cooperative
REQUIRED DOCUMENTS FOR A PURCHASE SALE OF A CO OP
1. PROPRIETARY LEASE
2. STOCK CERTIFICATES
3. OFFERING PLAN
4. HOUSE RULES
5. ALTERATION AGREEMENT
6. CREDIT AUTHORIZATION FORM
7. BOARD PACKAGE
OFFERING STATEMENT / PLAN
A document that is created and issued by a sponsor that is either in the process of converting a building or developing a new building. Its purpose is to provide an interested party with full disclosure of all facts pertinent to the project.
HOUSE RULES
The cooperative's habitation rules that govern all shareholders are known as house rules.
ALTERATION AGREEMENT
An alteration agreement is an agreement between the shareholder and the co-op., Written agreement, signed by co-op shareholder tenants, before any renovations, modifications, repairs, or alterations can begin.
BOARD PACKAGE
A board package is documentation that contains personal and financial information of the prospective shareholder. The board package is submitted to the board of directors for their consideration and potential acceptance of the proposed shareholder.
SHARE LOAN / CO OP LOAN
An agreement entered into by a borrower and a lender to finance the borrower's acquisition of the borrower's cooperative interest.
RECOGNITION AGREEMENT
A recognition agreement is a document signed by the borrower, lender, and co-op board. The signature by the co-op acknowledges the lending party's lien interest in the shares covered by the unit. These agreements normally call for the cooperative to notif
SPONSOR
When formation of property is held in cooperative form, the organizing party of a co-op is referred to as the sponsor.
HOLDER OF UNSOLD SHARES
A holder of unsold shares is any person or legal entity designated by the original sponsor to be a holder of these shares. A holder of unsold shares receives benefits similar to those of the sponsor; these include the ability to sell the shares to anyone
SOLD SHARES
are those purchased by parties with the intent of residing within the unit. When purchased from a sponsor or a holder of unsold shares, upon occupancy of the unit, the shares are deemed sold. Unlike sponsor shares or unsold shares, sold shares fall under
SPONSOR SHARES
ANY SHARES HELD BY THE ORIGINAL SPONSOR OF THE CO-OP
UNSOLD SHARES
SHARES HELD BY ANY PERSON/ LEGAL ENTITY; HOLDER AND FAMILY MUST NOT RESIDE IN UNIT
SOLD SHARES 1
SHARES BY THE PARTIES WITH THE INTENT IF RESIDING IN THE UNIT
CONDOMINIUM
The absolute ownership of an apartment or a unit (generally in a multiunit building) plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners.
COMMON ELEMENTS
Parts of a property normally in common use by all of the condominium residents.
BY LAWS
Rules and regulations adopted by an association.
CCR'S
Covenants, conditions, and restrictions of a condominium or cooperative development.
RESERVES
Money set aside to accumulate for future expenses.
DISCLOSURE STATEMENT/ OFFERING PLAN
he statement includes an architect's or engineer's report of the physical condition of the building, a statement of past and projected expenses, prices for each unit and expected amount of tax deductions, management arrangements, a description of the corp
DECLARATION
A formal statement of intention to establish a condominium
RED HERRING
Preliminary offering plan for a cooperative or condominium project submitted to the attorney general and to tenants and subject to modification.
BLACK BOOK
Offering plan for a cooperative or condominium as accepted for filing by the attorney general and used for marketing.
FLIPPING
A transaction in which one party contracts to buy a property with the intention of quickly transferring (or flipping) the property over to the ultimate buyer.
NON EVICTION PLAN
Westchester, Nassau, and Rockland counties, unless at least 15 percent of present tenants agree to purchase their units, the property may not be converted to condominium or cooperative ownership. In New York City, the property may be converted under a non
EVICTION PLAN
If the sponsor intends to evict present tenants at the expiration of their leases (referred to as an eviction plan), at least 51 percent of the tenants must state their intention to purchase. Other communities across the state are eligible to adopt the re
LETTER OF INTENT
The letter of intent is used as a vehicle to reserve a specific unit or units and sets forth an understanding of the terms of the transaction between the sponsor and prospective purchaser.
For the buyer, a letter of intent shows the seller the buyer's wil
CONDOP
A hybrid of condominiums and cooperatives is called a condop.