Purchase or Sale of Cooperative
If you would like to purchase a cooperative apartment, there are some things you need to know.
Almost all cooperative corporations require you to obtain the approval of the Board of Directors.
You will be required to complete an application package which will be reviewed by the Board before admission.
If you are obtaining a mortgage the Board will also require a letter of commitment from the lender.
Once the information is reviewed by the Board, you as the prospective new shareholder will meet with the Board for an interview.
If everything goes well and the Board approves you, the Board will contact your Bronx cooperative apartment attorney and then you can firm up a closing date. Your bank will also have to do things such as record their security interest, which may take up to a month.
It is important to have an experienced cooperative apartment lawyer to help you with your purchase of a cooperative apartment.
If you plan to SELL a cooperative apartment you may also have a set of forms to complete for the Board and/or managing agent or transfer agent.
There may be a notice requirement, fees due to the agent or transfer agent and flip tax or right of first refusal due at the closing.
Buyers and Sellers are customarily required to pay move in and move out deposits.
Your attorney must make sure that the bank gets your paperwork ready so that when it is time for the closing there are no costly delays due to missing stock certificates, loan documents etc.
It is important to have an experienced cooperative apartment lawyer to help you with your sale of a cooperative apartment.
In New York we have created specific laws to address the unique issues that face co-op owners. Since your ownership is in the form of shares of the entire property rather than ownership of a specific unit, certain guidelines must be created and enforced in order to ensure that every owner is treated fairly and retains their equal share of the property. As such, our New York statutes that address cooperatives are similar to those that address large businesses and corporations. They regulate everything from the operation of a cooperative to how the rights and rules of the shareholders are assembled. In general, each shareholder is given an amount of votes that corresponds with the number of shares they own.
Evan D. Rogers Esq. has been representing Cooperative Corporations as well as buyers and sellers of cooperative apartments for over 32 years.
For more information regarding the specifics of New York City co-ops, please call Evan D. Rogers Esq at 718.994.1640 or email him at Evan@rogersandrogersesq.com