CO-OPS

Here in Manhattan, most of the housing inventory is composed of cooperatives. Unlike a condo, co-ops are owned by a corporation. This means that when you buy a unit, you are not actually buying real property. Instead, you are, buying shares of the corporation (personal property). The shares entitle you to a lease that gives you the right to occupy a specific unit in the building.

We provide guidance to individuals and families throughout New York who need help closing on a co-op purchase. We can provide representation throughout the entire process, from contract negotiation and financing to closing.

FINANCING ADVANTAGES CAN MEAN LOWER CLOSING COSTS

Because your purchase is not real property, a co-op is financed with a special loan that is not technically a mortgage. Like a mortgage, however, the interest on the loan is tax-deductible. Additionally, if your co-op building has an underlying mortgage, a portion of your maintenance fees may be tax-deductible.

Most importantly, a co-op loan is not subject to New York's mortgage recording tax, which can mean significantly lower closing costs for you.

Since co-ops are only a common form of home ownership in New York, most lenders outside of New York may not be able to offer co-op loans or a smooth transaction.

PUTTING YOU IN A POSITION TO EARN BOARD APPROVAL

The co-op board sets its own standards for whom it will allow to buy a unit. These standards usually include your finances, but they can include almost anything else that is not discriminatory. Unfortunately, co-op boards do not have to operate with any transparency. Rejection often comes without a reason.

Our lawyers can help you with the approval process, which usually requires:

• A written application

• Personal and professional references

• Supplying a couple of years of financial statements and tax returns

The interview can take 30-60 days to secure, and the board usually renders its decision within a week. The timing on a decision is important because of loan commitment expirations and mortgage rate locks.

LEARN MORE BY CONTACTING US TODAY

Our law firm offers free consultations so that you can learn more about how we can help you close on a co-op purchase efficiently and with minimized stress. Whether in Manhattan, Queens, Brooklyn or anywhere in the area, call us at 212-701-4550 to schedule your free consultation today.