The Authoritative Guide on Co-op Shares in NYC
What are Co op Shares in NYC Real Estate: https://www.hauseit.com/co-op-shares-nyc-real-estate/
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Co op shares are units of ownership in a cooperative corporation that owns an apartment building, not unlike owning shares in a regular business corporation. The coop corporation’s main asset will typically be the apartment building, and thus each shareholder will own a piece of it. Coop shares come with a proprietary lease that entitles the shareholder to occupy a specific apartment which they have de facto ownership of. Coop shares can be bought and sold, and thus coop apartments can be traded just like condos or townhomes.
What Is a Coop Apartment?
A coop apartment is an apartment in a coop building that a shareholder has an indefinite right to occupy, despite the apartment being actually owned by the coop corporation. However, the coop corporation hands out proprietary leases along with stock certificates for specific apartments, and these proprietary leases essentially allow a shareholder to occupy that apartment indefinitely.
Differences Between Coops and Condos
The major differences between coops and condos are the ability to rent out the apartment and purchasers needing board approval. Coop boards also have more power vs condo boards, and are more empowered to fine, discipline and even foreclose on shareholders. Whereas a condo board may not be able to do much more than place a common charge lien on a delinquent owner, a coop board can swiftly foreclose on a shareholder who is behind on maintenance charges.
Are Coop Apartments Real Property?
Coop apartments are not real property because the apartment along with the rest of the apartment building is owned by the coop corporation. As a result, coop shareholders are technically tenants who have a proprietary lease that enables them to reside in “their” apartment essentially indefinitely.
What Is a Coop Shares Stock Certificate?
Coop shares are similar to the deed for a house or condo, except you are given a stock certificate vs a deed at closing. The stock certificate will state the name of the corporation, your name, how many shares you own and other miscellaneous information.
Can You Borrow Against Coop Shares?
Yes, you can borrow against coop shares and get the equivalent of a home mortgage. Instead of a deed as collateral, the bank will take your coop shares stock certificate and proprietary lease as collateral for the loan.
Looking to buy or sell an apartment in NY? Learn how you can save thousands on your closing costs at www.hauseit.com
Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Co op shares are units of ownership in a cooperative corporation that owns an apartment building, not unlike owning shares in a regular business corporation. The coop corporation’s main asset will typically be the apartment building, and thus each shareholder will own a piece of it. Coop shares come with a proprietary lease that entitles the shareholder to occupy a specific apartment which they have de facto ownership of. Coop shares can be bought and sold, and thus coop apartments can be traded just like condos or townhomes.
What Is a Coop Apartment?
A coop apartment is an apartment in a coop building that a shareholder has an indefinite right to occupy, despite the apartment being actually owned by the coop corporation. However, the coop corporation hands out proprietary leases along with stock certificates for specific apartments, and these proprietary leases essentially allow a shareholder to occupy that apartment indefinitely.
Differences Between Coops and Condos
The major differences between coops and condos are the ability to rent out the apartment and purchasers needing board approval. Coop boards also have more power vs condo boards, and are more empowered to fine, discipline and even foreclose on shareholders. Whereas a condo board may not be able to do much more than place a common charge lien on a delinquent owner, a coop board can swiftly foreclose on a shareholder who is behind on maintenance charges.
Are Coop Apartments Real Property?
Coop apartments are not real property because the apartment along with the rest of the apartment building is owned by the coop corporation. As a result, coop shareholders are technically tenants who have a proprietary lease that enables them to reside in “their” apartment essentially indefinitely.
What Is a Coop Shares Stock Certificate?
Coop shares are similar to the deed for a house or condo, except you are given a stock certificate vs a deed at closing. The stock certificate will state the name of the corporation, your name, how many shares you own and other miscellaneous information.
Can You Borrow Against Coop Shares?
Yes, you can borrow against coop shares and get the equivalent of a home mortgage. Instead of a deed as collateral, the bank will take your coop shares stock certificate and proprietary lease as collateral for the loan.
Looking to buy or sell an apartment in NY? Learn how you can save thousands on your closing costs at www.hauseit.com
Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
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