Coop definition
-is a corporation, Business Corporation or not for profits corporation, a limited dividend.
- many own real estate and within that real estate, they transfer a documents called a stock certificate and a proprietary lease to an owner of an apartment.
- In
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-The common charges also include: real property taxes that are paid by the corporation and it includes a portion of the debt service of the loan that the co-op itself may have taken when it acquired ownership of the property. And those operating costs, re
Due Diligence Issues
- Co-op loan - which is owned by the corporation, the building, and the individual shareholders which is secured by a pledge of their stock.
-Banks & some lenders have unique and special rules that might apply when you are presenting a purchaser who wants
Documents Needed by an Agent for Sale or Purchase of a Coop
1. Contract of sale- That document will contain key terms:
- Who is the buyer,
- Who is the seller,
- What is the purchase price, is it conditioned upon any special financing requirements, is it subject to approval by somebody else in a co-op or condo.
-O
cont'd
4. By Laws- contain significantly more detail about the internal operations of the co-op. They include rules about when meetings will be called, how meetings are called, and how directors of a co-op are elected (generally by the shareholders).
5. Propriet
Financial Statement
Several things will be looked at:
1. Do they have an adequate reserve fund or a working capital fund? This is a bank account with money in it that is available to the co-op in case of an unanticipated expense: i.e. a flood, needed repairs, shareholders in
Ex of a Co-op Sale Process
-An example based on an existing rental building, or an apartment building. The owner of that apartment building normally considered to be a landlord decided that they want to change the building from a rental building to a residential co-op. The first th
Salesperson's Role
1-The timing for making an application for Board approval in order to close the sale is important. Boards are generally composed of volunteers and they are usually working during the day, or retired so they may not meet very frequently. Find out when a bo
Sponsor units
-If you are representing someone who is a celebrity, good or bad, attention might go with that, you might want to look to buy either directly from a sponsor of a new construction, you might want to buy a condominium where there is less overview or in a co
Condo definition
- A condominium is a real property as opposed to a co-op where one would receive a deed for buying one and own a % of the common elements i.e. .5% of the common elements.
- it's any legal structure or building that has two or more units and the interior o
Sponsors in Condos
-NYS has a requirement that says a sponsor must surrender control or give up control of the board when there are either 5 years after the building is sold to the public or more than 51% of the units have been sold, the sponsor has to give up control.
New Construction vs. Conversion
- In a new construction, whether it's a coop or a condo, the first and most important aspect of this involves testing the market. If your client is a builder or developer, if in this case they become a sponsor of a co-op or condo, they are going to want t
Condop definition
-a condop is a combination of a condo and a co-op. The most common situation might involve one where the ground floor units are condominiums and they can be owned by the sponsor or they can be owned by the businesses that are in them, and the upper floor
Terms
-Cooperative - A dwelling unit owned by a corporation in which an owner owns stock commensurate with the value of his or her apartment compared to the value of the building as a whole. The stockholder has a proprietary lease to the apartment.
-Share Loan