Tip #3: What is a Co-op?

What is a Co-op?

Unlike many other Cities, there is this funny little thing called a Co-op. What is a Co-op? Maybe purchasers come to New York and become utterly confused by the notion of a Co-op Apartment versus a Condominium based structure.

I am here to tell you, do not be afraid a Co-op. In fact, many co-op Apartments and buildings can work to your advantage.

While some of the Co-op boards may be strict and difficult to pass, there are many boards that are flexible and will give you a great chance at approval.

What is a Co-op ?

A Co-Op is a building and ownership structure that offers the buyer shares in the Co-Op Corporation. Depending on the size of the unit, floor and other features, certain units may have more shares than others.

It is important to note, when a purchaser buys a Co-Op unit, they are buying shares in the Corporation and not the actual title to the property. Upon closing, the buyer received a stock certificate displaying their shares in the building.

Co-ops can be advantageous because the closing costs are less than a Condominium, the space may be larger than a Condominium unit and the price per SF should be less than other ownership structures.

In addition, Co-op buildings in certain neighborhoods may feature magnificent pre-war design that a Condo building will not be able to replicate.

Of course, if you are looking to purchase in a Co-op building, you must have a great Broker that can prepare your entire board package for submission. These packages typically range between 75-125 pages, filled with all types of documentation. You will be required to share all your financial information and other personal documents. For better or worse, thats the process when purchasing a Co-op unit. It is critical to work with a Broker that can present your package properly, so the Board approves your purchase in a timely manner.

For further information on Co-op Apartments and the process of purchasing a Co-op unit, please send us an email, garayrealestate@gmail.com