Co-op Real-ativity
What’s a Co-op?
A co-op is a non-profit company that owns and operates a residential complex. Buyers lease one of the building’s units by buying shares of stock in the building’s corporation along with a proprietary lease that claims their rights to exclusively inhabit. The land is often leased on a 99-year land lease and renewed every century.
Purchasing in a Co-op
Most purchases are cash transactions, but you can finance a co-op with a share loan rather than a traditional mortgage. Buyers have to go through an approval process, don’t own their apartment, and don’t have ultimate control over renting, subletting, or selling. If renting is permitted, you may have to present your potential tenants to the board for approval.
