New York Sale of Unit by Co-operative Housing Corporation

• Category: Corporations - Cooperatives
• State: Multi-State
• Control #: US-1236BG
• Format: Word; Rich Text

Description

A housing cooperative is a legal entity, usually a cooperative or a corporation, which owns real estate, consisting of one or more residential buildings. In New York, the sale of a unit by a cooperative housing corporation refers to the process of transferring ownership rights of a residential unit within a cooperative building from one party to another. Co-operative housing corporations, commonly known as co-ops, offer a unique form of homeownership where residents own shares in the corporation that owns the entire building rather than owning the unit outright. Here is a detailed description of the New York Sale of Unit by Co-operative Housing Corporation, including different types: 1. Co-op Unit Sale Process: The sale of a unit in a cooperative building involves several steps. Firstly, the seller prepares the unit for sale, including obtaining necessary approvals from the co-op board. The seller then lists the unit on the market, either independently or through a real estate agent. Interested buyers visit the unit and submit purchase offers, which typically include a purchase contract, financial information, and references. The co-op board reviews the potential buyer's application and conducts a thorough review process. They assess the buyer's financial stability, employment history, creditworthiness, and interview the potential buyer in some cases. If the board approves the buyer, they issue a waiver of the corporation's right of first refusal, allowing the buyer to proceed with the purchase. Once the buyer's offer is accepted, the parties proceed to the closing process. This involves legal documentation, including the transfer of shares from the seller to the buyer and the execution of a proprietary lease. The buyer also pays the purchase price and other associated fees, such as closing costs, transfer taxes, and attorney fees. 2. Types of New York Co-op Sales: a. Standard Co-op Sale: This is the most common type of co-op sale where a unit owner decides to sell their shares and proprietary lease to another individual. The buyer becomes a new shareholder in the cooperative and assumes all the responsibilities and privileges associated with homeownership within a co-op. b. Sponsor Unit Sale: A sponsor unit refers to a unit owned by the original developer or an entity related to the building's conversion from rental to co-op. In a sponsor unit sale, the buyer purchases shares directly from the sponsor, bypassing the co-op board's approval process. These sales are usually less restrictive and can be an attractive option for buyers who might not meet the typical board requirements. c. Estate Sale: In the case of a co-op owner's demise, their unit may be sold through an estate sale. This involves the heirs or estate administrators handling the sale of the shares and proprietary lease on behalf of the deceased owner's estate. d. Flip Tax Sale: Some co-op buildings impose a flip tax, which is a fee charged to sellers upon the sale of their unit. This fee is paid to the cooperative corporation and can be used for various purposes, such as building maintenance or capital improvements. A flip tax sale refers to the transfer of shares where the seller is responsible for paying the flip tax at the closing. e. Sublet Sale: Co-op buildings often have restrictions on subletting units. In a sublet sale, the current shareholder (owner) sublets their unit to a tenant by entering into a sublet agreement. The sublet sale process involves finding a qualified tenant, obtaining board approval for the sublet, and executing the necessary legal documentation. It's essential for both buyers and sellers to understand the specific requirements and processes associated with different types of New York Sale of Unit by Co-operative Housing Corporation. Consulting with a real estate professional experienced in co-op transactions can provide valuable insights and guidance throughout the entire sale process.

In New York, the sale of a unit by a cooperative housing corporation refers to the process of transferring ownership rights of a residential unit within a cooperative building from one party to another. Co-operative housing corporations, commonly known as co-ops, offer a unique form of homeownership where residents own shares in the corporation that owns the entire building rather than owning the unit outright. Here is a detailed description of the New York Sale of Unit by Co-operative Housing Corporation, including different types: 1. Co-op Unit Sale Process: The sale of a unit in a cooperative building involves several steps. Firstly, the seller prepares the unit for sale, including obtaining necessary approvals from the co-op board. The seller then lists the unit on the market, either independently or through a real estate agent. Interested buyers visit the unit and submit purchase offers, which typically include a purchase contract, financial information, and references. The co-op board reviews the potential buyer's application and conducts a thorough review process. They assess the buyer's financial stability, employment history, creditworthiness, and interview the potential buyer in some cases. If the board approves the buyer, they issue a waiver of the corporation's right of first refusal, allowing the buyer to proceed with the purchase. Once the buyer's offer is accepted, the parties proceed to the closing process. This involves legal documentation, including the transfer of shares from the seller to the buyer and the execution of a proprietary lease. The buyer also pays the purchase price and other associated fees, such as closing costs, transfer taxes, and attorney fees. 2. Types of New York Co-op Sales: a. Standard Co-op Sale: This is the most common type of co-op sale where a unit owner decides to sell their shares and proprietary lease to another individual. The buyer becomes a new shareholder in the cooperative and assumes all the responsibilities and privileges associated with homeownership within a co-op. b. Sponsor Unit Sale: A sponsor unit refers to a unit owned by the original developer or an entity related to the building's conversion from rental to co-op. In a sponsor unit sale, the buyer purchases shares directly from the sponsor, bypassing the co-op board's approval process. These sales are usually less restrictive and can be an attractive option for buyers who might not meet the typical board requirements. c. Estate Sale: In the case of a co-op owner's demise, their unit may be sold through an estate sale. This involves the heirs or estate administrators handling the sale of the shares and proprietary lease on behalf of the deceased owner's estate. d. Flip Tax Sale: Some co-op buildings impose a flip tax, which is a fee charged to sellers upon the sale of their unit. This fee is paid to the cooperative corporation and can be used for various purposes, such as building maintenance or capital improvements. A flip tax sale refers to the transfer of shares where the seller is responsible for paying the flip tax at the closing. e. Sublet Sale: Co-op buildings often have restrictions on subletting units. In a sublet sale, the current shareholder (owner) sublets their unit to a tenant by entering into a sublet agreement. The sublet sale process involves finding a qualified tenant, obtaining board approval for the sublet, and executing the necessary legal documentation. It's essential for both buyers and sellers to understand the specific requirements and processes associated with different types of New York Sale of Unit by Co-operative Housing Corporation. Consulting with a real estate professional experienced in co-op transactions can provide valuable insights and guidance throughout the entire sale process.