let’s co op erate!
TRANSCRIPT
Let’s Co-op erate!
How to find information
about New York co-operative apartments
Based on an Intelligent Edge guest blog post by Kelly Labrecque
Understanding what makes co-ops different and knowing where to find information will help you determine
ownership and valuation.
Recording a co-op sale is completely
different from registering a condo
or townhouse
It can be tricky, though…
Stick around, we’ll be your guides!
What are co-op
apartments?
(and why are they called a “co-op,” anyway?)
A co-operative apartment building
is owned by a corporation of owners
and governed by a board of
directors.
740 Park Avenue
Famous Manhattan co-op buildings include:
Famous Manhattan co-op buildings include:
1040 Fifth Avenue
Famous Manhattan co-op buildings include:
The Beresford
(Just to name a few)
Unlike condominiums, townhouses, and single-family homes...
• You don’t actually own your unit.
• Co-op buyers purchase shares in the building corporation, and in return they are granted the right to occupy a specific apartment.
• This is called a proprietary lease.
Buyers must demonstrate financial liquidity
• Some buildings require liquid assets of up to four times the apartment’s purchase price
• Some do not allow any financing at all
Co-op buying 1-2-3
Potential buyers must undergo a rigorous review by the co-operative’s board of directors
– The buyer must divulge personal, legal, and financial information
– Boards have the final say; even A-list celebrities with ready cash have been rejected from the most exclusive buildings
Co-op buying 1-2-3
Co-op boards develop and enforce building rules, like…
What, how, when and where you can renovate
If you can sublet your apartment
What types of pets are allowed
• They also assess maintenance fees, resolve disputes, and keep tabs on everything.
Co-op buying 1-2-3
Co-opResearch
Resources
How to confirm ownership
• When a co-op is purchased, the owner receives a shares certificate and real property transfer tax (RPTT) is paid to the city.
• The RPTT document provides:
the grantor/grantee names
unit(s) involved in the transaction
the sales price (based on taxes paid)
How to confirm ownership
• If financing is involved, the mortgage lender will file a Uniform Commercial Code (UCC) financing statement.
• The UCC statement provides:
the borrower
the lender
the unit(s) involved in the transaction
Find RPTT and UCC statements
Free at ACRIS
– Search by name and address/unit number via parcel ID
–Convert addresses to parcel IDs here.
Another great tool
• Search by name, address, or assessor’s parcel number for any property in the United States
• Access RPTT documents, UCC financing statements, building characteristics, and recent sales transactions within the building
• Handy for discovering neighbors
Still searching?
Try finding “comps”
– Comparable units in the same building with the same number of rooms and similar square footage.
– Look for units with the same letter-ending (i.e. #2G, #3G, #4G).
Great tools for comparables
City Realty
StreetEasy
Douglas Elliman
The bottom line
• Finding information about co-ops can be tricky and time-consuming, but…
• info is available if you know where to look.
• Follow market trends if you spend a lot of time researching prospects with co-ops.
For more information
Visit the HBG Research Resources pages for more useful resource links
http://www.helenbrowngroup.com/hbg-resources/
Call us at 617-393-1983
www.HelenBrownGroup.com