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Experienced Manhattan Co-op Real Estate Attorney
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.
Generally, buying a co-op is cheaper than buying a condominium. The cheapest option one can have is to buy co-op apartments from the Housing Development Fund Corporation or HDFC. This affordability is one of the main perks of buying a co-op in New York. Co-op apartment owners also do not have to worry about title insurance and mortgage recording tax. However, some eligibility conditions apply when buying a coop. For example, the HDFC has an income cap for buyers, either depending on a percentage of New York’s median income or depending on the co-op board’s decision.
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 her 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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Condos and co-ops are quite similar in a way that residents are living in their own units and have shared common areas such as a pool or a playground. However, the main difference between the two is their ownership structure.
According to the National Association of Housing Cooperatives, in terms of their price, a co-op is usually cheaper than a condo. Condo owners, however, have the advantage of paying lower downpayment mortgages while the downpayment for a co-op can reach up to 10 to 50 percent. For example, in Manhattan, it is not unusual to see a co-op downpayment reach up to 50 percent of the total price.
However, when it comes to closing costs, co-ops are more likely to be lower compared to a condo’s final costs. This is because co-op buyers are not required to pay for fees like title insurance, title searches, deed recording fees and mortgage tax. It is also important to remember that mortgage lenders often are more likely to issue a loan to condo buyers than co-op buyers. The main reason for this is that condos are real property that a lender may be able to take if the buyer defaults on the loan, while co-op shares can be harder to sell.
When it comes to renting or selling a co-op or a condo, a condo may have more flexibility in the options available to the owner . Because they have ownership of the property itself, condo owners are often allowed to sublet their units while renting your apartment out to other people is very difficult in co-ops. Additionally, a condo can be easier to sell because you can skip the board interview process that is usually present in co-ops. A co-op board has the authority to reject a buyer based on a number of reasons such as their credit history or the amount of the offer they made for the co-op shares. The co-op board also has the capacity to reject a prospective sale and wait for a higher price. Coop boards normally do not tell the reason for rejection to avoid potential exposure.
Both co-ops and condos have pros and cons. This is why the first step a buyer should take is to figure out how long they are planning to reside in or retain the property. Co-ops can be cheaper upfront and may be a good choice for long-term residents. A condo on the other hand can be easier to sublet or sell when the time comes. It may also help diversify a person’s investment portfolio.
Whether you are looking to buy a co-op or a condo in New York, it is important to speak with an experienced Manhattan real estate attorney first to ensure that you are getting the most out of your transaction. Sishodia PLLC has a team of skilled real estate lawyers who understand co-ops and condo transactions and they may be able to provide you with the legal representation you need. Contact us today at (833) 616-4646 to schedule a consultation with one of our top-rated attorneys.
Buying a co-op can require a lot from potential buyers. Usually, they require a 20% to 30% minimum down payment and a low debt-to-income ratio. A co-op board might also require the buyer to have enough cash reserves to sustain them for up to two years in case the buyer loses their job. If you are looking to buy a co-op, here are the basic steps you have to keep in mind:
It is best to first get an idea of how much you are willing to spend on a home before you start looking for one. It will also be better to get pre-approved for a mortgage. When you are pre-approved for a mortgage, the process after you find a place can be smoother.
Hiring a real estate agent can guide you in completing the co-op application and can help you negotiate and counter offers. A real estate agent can recommend a co-op that suits your property goals.
Once an offer is made by your agent and is accepted by the seller, the next step for the purchaser is to secure a real estate attorney to work on the contract review and negotiate . Simultaneously a good real estate attorney will be conducting due diligence on the building where you are purchasing. Such due diligence shall include review of all building documents (offering plan with amendments, last two years of financials, house rules, by laws, pet policies, sublet policies and so on). Your real estate attorney shall also schedule board minutes review and look through the board minutes at least three years back. The best time to speak up about any repairs or actions you want to be done on the property is before signing the contract. All of the above is important for an attorney to be reviewed so you can make an educated decision as a purchaser if this building is right for you. Once the due diligence is completed and the contract is fully negotiated, in New York buyer signs first and provides 10% down payment on signing, then seller countersigns. Once the contract is executed by both the parties, deposit receipt is acknowledged by escrow agent and a copy of the fully executed contract is delivered to the buyer’s attorney, it is a time it has legal effect.
Once the contract signing is done, the application will be submitted to the board. If the application is accepted, you may be requested to attend a board interview. The board will ask you questions about your sources of income and aims to determine whether you are a good fit to their co-op. If things go well at the interview, a closing date will be set. After the closing, the new owner will be able to move to their new home.
If you are looking to buy a co-op in New York, speaking to a skilled real estate attorney may be able to help you weigh your options and choose the best option for your real estate transaction. Sishodia PLLC’s experienced co-op property attorneys are well-versed in handling real estate transactions including the purchase and sale of a co-op or condo. We have helped clients buy the home that is best suited for their needs and we may be able to help you, too. Contact our law firm today at (833) 616-4646 to schedule a consultation.
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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, its 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 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.
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.
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