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What is important is not what people call it, it is what are your legal rights.
You own stock, which you have to get permission from the Board before you can sell. This is an important consideration. I once looked at the database containing all coops put up for sale, and what I immediately noticed were the number that couldn't be sold. Sometimes waiting for Board approval will terminate a sale.
There is a reason condos sell for much more, the owner has deed of ownership and can sell to whomever they want whenever they want, without any prior approval from a Board. In the coop agreement, the owner of the shares is called a leasee with different rights than an ordinary leasee since it is a coop.
One reason they are cheaper is because the shareholders pay for the underlying mortgage on the building. Another reason is that there are fewer condos.
I think in Westchester your chances of the coop board turning down your buyer are slim to none. These days, I assume most have a pre-approved mortgage, and are probably vetted as much as possible by the realtors, who work for the sellers.
Sure, you can get some real jerk buyers who are turned down because they are so unlikable. But that's rare.
Other than having to divulge your financial life to your future neighbors, you have provided ZERO compelling reasons why not to buy a coop.
Here is an advantage of a coop. If a coop owner wants to sublease their unit, the coop board gives the prospective tenant an anal exam. And they limit the number of renters. In condos, you can rent to anybody and you can sell to anybody who can get a mortgage.
One reason they are cheaper is because the shareholders pay for the underlying mortgage on the building. Another reason is that there are fewer condos.
Yes, this is important to understand. The corporation had an underlying mortgage that had to be paid off on top of the loan that the buyer may have to take out to pay for the shares. Boards have the ability to take out new mortgages depending upon the by-laws. That there are fewer condos would make no difference if ownership was legally equivalent. They are not. Condos suffer from many of the same issues associated with co-ownership of property including Boards and over-rental. Co-ownership is a general problem in any form.
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Sure, you can get some real jerk buyers who are turned down because they are so unlikable. But that's rare.
It is the time factor that makes the difference. Potential buyers have to wait for a Board decision as opposed to the condo's owner decision. This is huge. Also, bank loans for coops go through a different process since they are loans not mortgages.
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Other than having to divulge your financial life to your future neighbors, you have provided ZERO compelling reasons why not to buy a coop.
I wouldn't buy a coop for the reasons given and I know lots of buyers (including previous coop owners) and professionals who agree. Every person should decide for themselves based upon full information. I've heard real estate professionals describe it as no difference. This is incorrect and incomplete.
Both coops and condos incur similar problems associated with co-ownershio, e.g. Boards and over-rental. These and other issues should be considered when entering into real estate co-ownership agreements.
The OP asked about Garth Road and E. Hartsdale Avenue. She did not ask if it was a bad idea to purchase a coop. Thousands are purchased every year in Westchester County. These people are not stupid. If you have a long-term horizon and find something you like, it is a great alternative to renting.
Bank loans go thorough a different process? The OP doesn't care. Nobody cares.
Oh, and here is a nice thing about coops. There was not a foreclosure problem during the financial crisis. Why? Because boards typically require a minimum of 20% down, and often more. People have put 20% down are not walking away like people who put next to nothing down.
Time to move on here. The OP wants to buy a coop. Wish her luck that she finds a nice building with nice neighbors in a nice neighborhoods.
OP - You can't take a person seriously who uses the term "coop renter." I've been in the real estate industry since the 1980's, and I never ever heard it before.
OP - You can't take a person seriously who uses the term "coop renter." I've been in the real estate industry since the 1980's, and I never ever heard it before.
Look Kat the coop agreements and law. Coop residents are referred to as lessors, because they are leasing. This is an extremely important legal distinction.
Since you are a realtor, this link may be helpful. It is important to understand the differences.
Going back to the original post, my husband and I were in OP’s situation four years ago. We considered Garth Road and E. Hartsdale but chose the latter. We both liked the garden style co-op that was within walking distance to the train vs the huge apartment buildings. I don’t think Garth Road has garden style co-ops. We’ve never had any issues with assigned parking with our co-op, and there is a waiting list for garage spots that you can pay an additional fee for. There’s a street that runs through the co-op that other E Hartsdale residents park on, so I can’t speak for other co-ops parking situation. We are in a maisonette unit, so we have a private yard and a separate entrance. It has the feel of a house. The entire co-op is smoke free (in public areas) and dog free, but I have seen people walking their dogs despite the signs that say not to.
If you and your husband will be commuting via metro north on a daily basis, I personally feel like the Hartsdale station is less of a pain in the mornings. Express trains will typically arrive empty during morning rush hour, so your chances of getting a seat are very high. By the time the train makes it to Scarsdale, people get a little pushy with seats.
It took us about four months from offer to closing. I know of another unit in the co-op that had the same time frame when it sold recently. We found our agent through an open house and were happy with her.
Look Kat the coop agreements and law. Coop residents are referred to as lessors, because they are leasing. This is an extremely important legal distinction.
Since you are a realtor, this link may be helpful. It is important to understand the differences.
There is no important legal distinction. Nobody gives a crap about that law you posted.
People BUY coops, they don't RENT coops. When you BUY something, you OWN something. In this case you OWN shares in a coop corporation that give you the right to occupy an apartment for the rest of your life. That is OWNERSHIP.
Hey, when you buy shares in Amazon, are you an owner of the stock, or are you a renter the the stock.
There is no important legal distinction. Nobody gives a crap about that law you posted.
People BUY coops, they don't RENT coops. When you BUY something, you OWN something. In this case you OWN shares in a coop corporation that give you the right to occupy an apartment for the rest of your life. That is OWNERSHIP.
Hey, when you buy shares in Amazon, are you an owner of the stock, or are you a renter the the stock.
Legal distinctions are very important. If I own Amazon stock, I can sell it whenever I want, I can gift it whenever I want, and I can do whatever I wish with it without the Board's permission.
Not so with coop ownership. The stock ownership permits me to vote for the Board members. Otherwise, the law considers me a lessee to the Coop Corporation with rights afforded to me by the state laws. I cannot relieve my self of the lease or sub-lease without Board permission. Condos are different in that I own the deed and can sell and transfer the deed without permission of the Board. It is still entirely different form of real estate ownership.
Banks most certainly recognize the difference as does the marketplace which is how this whole discussion started. In your case you don't care. I very much care. Differences in financial taste.
Legal distinctions are very important. If I own Amazon stock, I can sell it whenever I want, I can gift it whenever I want, and I can do whatever I wish with it without the Board's permission.
Not so with coop ownership. The stock ownership permits me to vote for the Board members. Otherwise, the law considers me a lessee to the Coop Corporation with rights afforded to me by the state laws. I cannot relieve my self of the lease or sub-lease without Board permission. Condos are different in that I own the deed and can sell and transfer the deed without permission of the Board. It is still entirely different form of real estate ownership.
Banks most certainly recognize the difference as does the marketplace which is how this whole discussion started. In your case you don't care. I very much care. Differences in financial taste.
Look who crawled out from under his rock. Just when we thought we were done with him.
So those high finance gazilloinaires in Manhattan who buy coops have no clue what they are doing?
Ruby, this man obviously has an ax to grind-just forget about it.
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