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.
At Greenberg & Wilner, our attorneys 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 Today By Contacting Greenberg & Wilner
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 646-835-0730 toschedule your consultation today. Hablamos español.