By Robin Shapiro

A co-op is a form of ownership in which corporation stockholders occupy property under a lease. Technically, a co-op is personal property – it is not real estate, although the IRS recognizes (with limits) mortgage interest and property tax deductions. Interest on loans for co-op purchases tend to be slightly higher than on ordinary mortgages. Co-op shareholders do not pay rent, but they do pay maintenance towards the upkeep of common areas and property taxes. The buyer of a co-op should look at the financial strength of the co-op because the new shareholder takes on part of the co-op’s liabilities (mortgage, etc.).

A condominium is a form of real estate consisting of individual ownership of a unit and co-ownership of common areas. Mortgages are available to condo buyers as in any real estate transaction. Condos charge special fees called assessments for maintenance of the common elements (like garbage pickup, etc.).

Both co-ops and condos must file plans with the NYS Attorney General. This filing becomes a prospectus upon the Attorney General’s approval. Co-op boards can reject any applicant without explanation. Condo boards can be “choosy” as well.

St. Patrick’s Day falls on Sunday, March 17. Due to the holiday falling on a Sunday, the big NYC parade will take place on Saturday, March 16. Have a great holiday weekend! Call me. Love, Robin.

Related post

Leave a Reply

Your email address will not be published. Required fields are marked *