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Old 12-20-2015, 02:45 PM
 
Location: Close to an earthquake
888 posts, read 889,652 times
Reputation: 2397

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I've been talking to a family member who has been looking for entry-level housing in Phoenix and has looked at condos/townhomes. He's shared how some are described as co-ops or co-operatives. He asked me what that meant and I told him it must be some different type of ownership that is more common in Arizona rather than California.

He also noticed that many of these are described as cash only purchases which makes me wonder if this type of ownership or interest in a property is somehow more difficult to acquire via a traditional real estate loan.

Can anyone here give me an executive two cent briefing on this? Thanks.
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Old 12-20-2015, 03:08 PM
 
Location: Denver, CO
331 posts, read 465,185 times
Reputation: 591
I found this online article the other day. I'm not familiar with the subject, so I'm not endorsing it, just passing it along FYI: That's Not Really A Condo: Housing Cooperatives in Arizona | The Bainbridge Law Firm, L.L.C. | Scottsdale Arizona
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Old 12-20-2015, 03:17 PM
 
Location: Close to an earthquake
888 posts, read 889,652 times
Reputation: 2397
Quote:
Originally Posted by Suzatlarge View Post
I found this online article the other day. I'm not familiar with the subject, so I'm not endorsing it, just passing it along FYI: That's Not Really A Condo: Housing Cooperatives in Arizona | The Bainbridge Law Firm, L.L.C. | Scottsdale Arizona
Thank you for sharing this. If I wasn't so lazy, I could have done a search myself. I'm familiar with that term in New York real estate.
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Old 12-20-2015, 03:25 PM
 
Location: Denver, CO
331 posts, read 465,185 times
Reputation: 591
I also found a discussion topic over in the Tucson forum: tucson condo co op experiences

Probably co-ops have been discussed here in the Phoenix forum, but I was browsing Tucson RE at the time. IIRC, often co-ops have the right to approve buyers, which can hold up - or prohibit - a sale. Someone in the Tucson discussion cited that as a problem that's kept co-op prices low. Sounds like one of those things that can be a mess or not, depending on the co-op's board.
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Old 12-21-2015, 12:53 AM
 
Location: When you take flak it means you are on target
7,646 posts, read 9,944,809 times
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As I understand it, generally co-ops you own a share in a corporation which owns the building, and you get the the right to occupy your particular unit, whereas with a condo you own your unit separately and share the costs of common areas and building maintenance outside of your interior walls.

Also I think in co-ops you have to be approved by the membership, which can require particular income and social standings. Like the NYC co-ops, some it doesn't matter how filthy rich someone is they still have to be voted in.

Also I believe co ops are taxed differently if you sell for a profit but I don't know for sure.
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