New York City co-ops are different from condominiums and single-family homes. In purchasing a co-op, a person is not buying real property. What the person is buying in a co-op are shares of the corporation managing the building. Once a person is successful in buying the shares in a co-op, they become a shareholder in the corporation. The buyer will be given a proprietary lease and will become a tenant in the building. The bigger an apartment is, the more shares a person may be required to buy.
If you are looking to buy into a co-op or to sell yours, it is important to have a real estate lawyer working with you. Having a skilled real estate attorney may be able to provide you with the information you need in order to get the best out of your co-op transaction.
Sishodia PLLC’s skilled Manhattan co-op real estate attorney Natalia Sishodia, and our team of experienced New York City real estate lawyers are ready to provide you with the legal representation you may need. We have helped many clients buy and sell their properties smoothly, and we can use this experience to help you protect your rights in a real estate transaction.
Contact us today at (833) 616-4646 to schedule a consultation with one of our attorneys.
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In New York, co-ops are unique living arrangements. Co-op is short for “cooperative”. As mentioned, buying a co-op apartment means that you are actually buying shares in a corporation that owns the building. While it may sound odd that a listing would advertise a specific apartment, the buyer is actually buying shares.
In legal terms, co-ops are called “personal property” whereas condominiums and houses are called “real property”. This is because a person who buys a co-op apartment is only buying shares and not real estate.
When buying shares in a co-op, each owner will be given the right to occupy a specific apartment. This right is called the “proprietary lease” for the said apartment. A person will get a share in the overall building as well as the right to live in the apartment they purchased.
At Sishodia PLLC, our team of skilled attorneys is skilled at handling transactions involving real estate. We may be able to provide the legal representation you need when it comes to buying or selling a co-op or a condominium. Contact us today to learn more about our services.
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Both co-ops and condos give you your own space and shared amenities, but the real difference is ownership. In a condo, you own the property itself. In a co-op, you buy shares in a corporation that owns the building, giving you the right to live in your unit.
Co-ops often cost less upfront, but they usually need a much higher down payment—sometimes as much as 50% in Manhattan. Condos allow lower down payments, though their closing costs are typically higher because you pay fees like title insurance and mortgage taxes. Lenders also tend to prefer condos since they’re real property and easier to secure loans against.
If you plan to rent or sell later, condos offer more flexibility. You can usually sublet or sell without board approval, while co-ops often have strict rules and can reject buyers for various reasons.
Choosing between the two comes down to your long-term plans. If you’re settling in for the long haul, a co-op might fit. If you want flexibility or expect to move or rent out your place, a condo could be better.
Before you decide, talk with a Manhattan real estate attorney who can walk you through the financial and legal details. Sishodia PLLC helps buyers make smart, confident choices in New York’s competitive market. Call (833) 616-4646 to schedule your consultation.
Buying a co-op in Manhattan involves a highly structured process, with strict financial and personal requirements set by the building’s Co-op Board. Working with an experienced real estate attorney is essential to navigate the legal complexities and ensure a smooth transaction.
This initial phase establishes your financial capacity and locks in the transaction’s core terms.
A strong financial profile and mortgage pre-approval are your foundation for a competitive offer.
This is the critical legal phase where your attorney investigates the co-op building’s health and stability.
Due diligence protects your financial investment by ensuring the building is sound before you commit to the contract.
This intensive phase requires the assembly of a detailed personal and financial dossier for the Co-op Board. This step can often occur concurrently with the mortgage application process.
A complete, professional, and well-organized board package is essential, as it forms the basis of the board’s final decision.
The Co-op Board reviews your application to determine if you are a financially and personally suitable candidate for shareholder residency.
The interview is your chance to confirm the positive impression made by your package and demonstrate your stability and commitment to the community.
Once the Board grants final approval, the closing date is scheduled.
The closing formally transfers the corporate shares and proprietary lease, marking the successful completion of your co-op purchase. From start to finish the process can take 3 months or more, possibly concluding sooner if the purchase does not require financing
If you are looking to buy a co-op in New York, speaking to a skilled real estate attorney can help you weigh your options and choose the best option for your real estate transaction. Sishodia PLLC’s experienced co-op real estate attorneys are well-versed in handling real estate transactions, including the purchase and sale of a co-op or condo. Contact our law firm today at (833) 616-4646 to schedule a consultation.
Natalia A. Sishodia is a seasoned New York City attorney known for providing clear, practical guidance in real estate, business law, elder law, estate planning, and taxation. Fluent in English and Russian, she advises clients from around the world, including Europe, Asia, the Middle East, and North America, as well as high-net-worth individuals, entrepreneurs, and major lenders with transactions centered in New York.
Ms. Sishodia provides quality assistance on Manhattan co-op and condo purchases and sales, in addition to single- and multi-family homes, new developments, and 1031 exchanges. She has successfully negotiated and closed hundreds of transactions, earning a reputation for organized, stress-free closings through detailed planning and open communication. Her private-client work includes cross-border estate and tax strategies, with attention to modern assets like cryptocurrency. She has contributed to access-to-justice initiatives and worked with the United Nations DESA/CRPD. Ms. Sishodia has received the Award for Outstanding Achievement in International Law and the Avvo Client’s Choice Award, and she is admitted to practice in New York State.
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Shareholders in a co-op have a stake in helping ensure that their home is a nice place to live. A well-maintained building helps the residents live a harmonious life. In order to maintain this environment, each shareholder is expected to pay a monthly maintenance fee. Collectively, these fees cover property taxes, utility bills, mortgages, staff salaries, and many others.
These fees are paid monthly in one go because the shareholders do not own the apartment. In a coop, it is the cooperative that manages the building that is responsible for paying property taxes and all other bills, not the apartment owners.
Maintenance fees are sometimes about 50% common charges and 50% property taxes. Each year, co-op owners will get a form from the managing company letting them know their share of the property taxes. Portion of maintenance allocated to property taxes is tax-deductible on a personal tax return if the shareholder chooses an itemized deduction. These maintenance fees may also be used in planned capital improvements.
The fees are determined by the shares a person owns in a co-op. These fees could differ from one owner to another. If a person owns more shares in the co-op, they will also bear a larger percentage of the cost. However, with a bigger share, they also have more decision-making power in the cooperative.
Sishodia PLLC’s team of attorneys understands the legal complexities of residential real estate and tax implications. We can use our skills and knowledge of real estate law and tax to help you turn your plans into actions. If you are looking for a new home and are not sure if a co-op or a condominium will be best for you, call our team today. We may be able to help provide you with the legal advice that you need.
Buying a co-op apartment can have a lot of benefits compared to other types of residential units in NYC. It is good for a buyer to understand the advantages a co-op has so that they can weigh their options better. A few of the benefits of buying a co-op are:
Sishodia PLLC’s team of Manhattan co-op purchase attorneys are skilled at handling any legal complexities a real estate transaction might bring. We may be able to assist you in finding your new perfect home and give you legal advice about what is best for your transaction. Contact us today at (833) 616-4646 to schedule an appointment with our team of legal professionals.
Housing Development Fund Corporation (HDFC) co-ops represent a distinct class of affordable housing in NYC, established to provide homeownership to low- and moderate-income residents. While they offer significantly below-market pricing and often have lower monthly maintenance fees due to partial tax exemptions, they come with stringent requirements beyond a standard co-op.
The most critical requirement is the income cap for buyers.
Applicants must meticulously document their income to ensure it falls below the building’s specific cap for their household size.
HDFC co-ops are designed to ensure long-term affordability, which places limits on the sale of the unit.
HDFCs are intended as permanent, non-speculative homes, meaning profit on resale and the ability to rent the unit out are severely limited.
Our Manhattan co-op real estate attorneys from Sishodia PLLC provide comprehensive oversight across every stage, from vetting the initial offer terms to securing final Board approval and successfully completing the closing.
Building due diligence is a critical phase. A skilled real estate attorney’s role is to interpret the corporate and financial documentation to avoid potential issues down the line. Here are some important issues your attorney can help you look out for when it comes to evaluating your choices when choosing a co-op.
Evaluating a co-op’s finances reveals its long-term viability and the likelihood of future unexpected costs. The primary documents for this are the annual Financial Statements (Balance Sheet, Income Statement, and Cash Flow Statement).
The financial review focuses on three key areas:
Reviewing the Board Meeting Minutes provides a look behind the scenes at the building’s ongoing management, issues, and planned projects. Your attorney will typically review at least two to three years of minutes for recurring problems or unresolved matters.
The review seeks evidence of several issues. Look for repeat discussions concerning major building systems like the boiler, elevators, roof, or facade. Recurring failures suggest the board is applying “band-aids” rather than funding permanent solutions, foreshadowing large, unplanned expenses. Furthermore, minutes disclose any active or threatened lawsuits against the co-op or significant insurance claims, which can signal structural defects or unresolved disputes that could deplete reserves or raise insurance premiums. Finally, note disagreements about subletting, pets, or renovations that may affect your future use of the apartment.
Buyers must determine if a major capital project has been planned or discussed but not yet formally announced, which would ultimately lead to a special assessment.
The board minutes are the primary source, often containing discussions about major repairs like Local Law 11/98 facade inspections, roof replacement, or boiler upgrades long before the project is formally announced. Additionally, the attorney checks the footnotes of the financial statements, as they may disclose pending legal claims or financial obligations related to future work. If available, a Capital Needs Assessment (or Reserve Study) – a report outlining all anticipated major repairs over the next 20–30 years – is critically reviewed.
Monthly maintenance fees should be predictable. The fee history for the past several years must be analyzed.
Annual maintenance increases are normal to keep pace with rising property taxes, utilities, and labor costs. Well-managed co-ops typically see modest annual increases (e.g., 3% to 5%). A red flag is a history of annual maintenance increases significantly higher than the rate of inflation or sudden, large increases (10% or more), suggesting the building has been poorly managed or deferred necessary repairs. Conversely, a co-op with no increases for many years can also be a red flag, indicating the board is delaying reality and will likely implement a massive increase or assessment soon.
The co-op board holds the final power of approval. A high rejection rate is a warning sign that can indicate problems with the building or its leadership.
While the exact figure is rarely disclosed, a very high number of recent deal fall-throughs or multiple rejected applicants for the same unit (information often gathered via professional networks) can signal a problem. Possible causes include a board with unreasonable financial requirements (demanding excessively high post-closing liquidity) or a hidden flaw with the building (structural issues, chronic noise, litigation) that buyers are discovering during due diligence, leading them to withdraw.
Building due diligence is one of the most crucial stages in a Manhattan co-op purchase, and having an experienced real estate attorney by your side ensures you make an informed, confident investment. At Sishodia PLLC, we conduct a detailed review of the building’s financial statements, board minutes, maintenance history, and potential assessments to uncover risks that could impact your purchase. Our attorneys provide clear, data-driven insights into the co-op’s stability and future financial obligations, allowing you to negotiate from a position of strength and avoid unpleasant surprises after closing.
Contact Sishodia PLLC today at (833) 616-4646 to schedule a consultation with a skilled Manhattan co-op real estate attorney and secure peace of mind before signing your contract.
There is a wide variety of legal issues that a co-op owner must face. These issues include contracts and contested legal disputes. This is why having a skilled Manhattan co-op real estate lawyer is important. A real estate lawyer understands the important aspects of a real estate transaction as well as the intricate laws of real estate in NYC.
For buyers, a real estate lawyer may be able to help with:
For sellers, a real estate attorney may be able to help with:
Buying your first home is an exciting process but can also get really stressful. Below are several things that can go wrong on a buyer’s side prior to the Closing:
Things can go wrong on the Seller’s side as well:
All above issues may appear beyond the party’s control. Thus it is important to work with an experienced and knowledgeable real estate attorney who specializes in real estate transactions, has years of experience, knowledge of the tax and financing side of a real estate deal. Working with a sharp real estate attorney will minimize your stress if any of the above issues arise. Your attorney is your problem solver and shall be watching for your best interest.
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Whether you are looking to buy a co-op or a condo, it is important to understand the legal aspects of the transaction in order to get the most out of it. Buying or selling real estate properties can be complicated and can be overwhelming if a person is not used to dealing with such transactions.
At Sishodia PLLC, experienced Manhattan co-op real estate attorney Natalia Sishodia and our team of attorneys are well-versed in dealing with the complexities of real estate transactions including buying or selling a co-op housing. We work hard to prioritize our client’s interests and help them understand their rights and roles in the process. Our innovative strategies and creative approach to issues may help you get the best out of your transactions.
Our team is with you from start to finish to provide the legal advice you may need. Contact us today at (833) 616-4646 to schedule a consultation.
If you’re buying into a co-op that still has rent-stabilized units, you’re stepping into more than just a home — you’re entering a building with mixed financial dynamics. Stabilized tenants often pay lower, regulated rents, which means the building may collect less income from those units than if they were market-rate. That gap can put pressure on the building’s budget and might mean higher maintenance fees or special assessments to cover shortfalls. On the resale side, prospective buyers may be less inclined to purchase in a building where a sizable portion of units are stabilized, because that can limit future rental income potential or resale flexibility. So, while the presence of stabilized units doesn’t automatically doom a purchase, it’s a factor you’ll want to understand clearly.
Generally yes. When a unit in a converted building has a rent-stabilized tenant and that tenant leaves or the lease ends in certain conversion plans, the unit often loses its stabilized status and can be rented or sold at market rate. For example, if you buy a building that already converted to a co-op and a stabilized tenant vacates, you may then be able to sell or rent it without the rent-stabilized restrictions. That said, you’ll want to check the specific conversion plan, building documents, and whether any units are permanently regulated, those details could alter how things work.
In Manhattan co-ops a “flip tax” isn’t a government tax, it’s a fee the building charges when one of its apartments is sold. The fee is usually set in the building’s by-laws or proprietary lease and goes into the building’s financial reserves or operating budget. So when you buy (or sell), you’ll want to check how the flip tax is calculated (percentage of sale price? flat fee? per share?), when it becomes payable, and whether it will impact your net proceeds or your cost to buy.
Most often the seller pays the flip tax, because the fee is triggered by the sale and the seller is the one realizing the gain. However, it can be negotiable: in a competitive market, or if your agent negotiates smartly, the buyer might agree to take it on (or to share it) in exchange for other concessions. Always check the building’s governing documents and ask your attorney to clarify who is responsible in that building.
The standard range in NYC co-ops is about 1% to 3% of the sale price. Some buildings charge more, especially those set up to preserve affordability (HDFC co-ops, for example) may have higher rates. Factors that make it higher include: a building wanting to build up reserves; a historical building with higher upkeep; a dominant “flip tax as barrier” policy; or units being sold quickly. Factors that make it lower include: strong competition among units, newer building or less legacy cost, or the building consciously limiting fees for marketability.
Often you can, but co-ops tend to be more restrictive than condos. Many Manhattan co-ops require you to live in your unit for 1–2 years before you’re permitted to sublet. After that period, there may be limits like “you can sublet 2 out of every 5 years,” fees (sometimes 20–30% of your monthly maintenance) and you’ll need board approval for your subtenant. If you think you may rent it out later, check the building’s sublet policy carefully before you buy.
If you buy a co-op in Manhattan, the contract will typically include a board-approval contingency that says the sale is subject to the board’s approval. If the board rejects your application outright (or grants only conditional approval that you don’t accept), you’re generally entitled to cancel the contract and get your deposit back, unless you acted in bad faith (for example, you lied in your application or withheld documents). Work with your attorney to ensure your contract has that protection, and submit your board package carefully and honestly.
There are clues. Some buildings publish minimum down payment or liquidity requirements in their offering documents. Others have reputations among brokers for being strict (higher down payments, stronger cash reserves, more rigorous interviews). Articles about the board process note that in luxury Manhattan co-ops boards may demand higher down payments, larger post-closing reserves, and detailed lifestyle vetting. Your attorney and agent can ask the managing agent or look into recent comparable sales in the building to gauge how demanding the board is.
In most co-op purchases you do not buy title insurance the same way you do for a condo. That’s because you’re buying shares in a corporation and a proprietary lease, not real property. Title issues are less common in that structure, and many co-op buyers skip the traditional title insurance. That said, you still want your attorney to check building documents, bylaws, share certificates, corporate minute books, due payments etc., to avoid surprises. If you’re unsure, asking about a “shares transfer insurance” or submitting a risk assessment is wise.
A condo deed gives you fee simple ownership of the unit and an undivided share of the common elements, meaning you own real property in your unit. A proprietary lease (in a co-op) gives you the right to occupy a specific unit, and you own shares in the corporation that owns the building. You’re effectively a shareholder and tenant of the corporation. That means you don’t own the walls; you own a lease-right (the proprietary lease) and shares. This difference affects financing, resale, governance, and board approval processes.
Closing costs vary widely, but some features for co-ops in Manhattan include lower title/recording fees (since you’re transferring shares, not real property) and typically no mortgage tax (depending on mortgage vs. cash) versus a condo. However, you’ll still pay attorney fees, move-in fees, application/board fees, possibly flip tax, building transfer fees, etc. Because each building is different, you should ask for a closing cost worksheet from your attorney early so you’re not surprised.
Local Law 11 (also called FISP – Façade Inspection & Safety Program) requires NYC buildings over six stories to inspect their exteriors every five years and file technical reports with the Department of Buildings. For you as a buyer, it matters because if the building is currently in or about to enter a façade inspection cycle, there may be deferred repairs, repair orders or upcoming special assessments that could impact financials, maintenance costs or move-in timelines. You’ll want your attorney to check which cycle the building is in and any outstanding or upcoming work.
Local Law 97 (LL97) mandates that many NYC buildings (typically over 25,000 sq ft) reduce greenhouse gas emissions starting in 2024, with stricter limits in 2030. If the building you’re buying into needs major energy system upgrades (boiler, HVAC replacement, insulation or other emission-reducing measures) in order to comply, that may mean special assessments or higher maintenance/fees during the upgrade. When you’re reviewing a co-op, you’ll want your attorney to ask: has the building budgeted for this? Are there upcoming obligations? What’s their plan to comply?
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