Chapter 15: Condominiums & Cooperatives Flashcards
A dwelling unit owned by a corporation in which an owner owns stock commensurate with the value of his or her apartment compared to the value of the building as a whole. The stockholder has a proprietary lease to the apartment.
Cooperative
A loan in which shares of stock are used as collateral. Typically found in cooperative purchases.
Share Loan
A lease given by a corporation to another. It is often used in a co-op context, where the owner is given a certain number of shares in the co-op, along with a proprietary lease for one of the residences in the building.
Proprietary Lease
Monthly payments by a shareholder to a cooperative corporation.
Maintenance
The developer or owner organizing and offering for sale a condominium or cooperative development.
Sponsor
A series of documents submitted for the review by a cooperative board.
Board Package
Describes the terms under which the cooperative gives permission to a shareholder before making any changes or improvements to the unit the shareholder occupies.
Alteration Agreement
A form of fee simple ownership of part of a structure having multiple units. Owners have title to their own units plus a share of the common elements.
Condominium
A residential establishment that includes both a condominium and cooperative ownership structures. Typically the condop refers to the residential portion of a building which is treated as a single condominium unit owned through a cooperative-ownership structure.
Condop
The owner’s rights and obligations for a condominium.
By-Laws
Also known as Common Areas; refers to the spaces in a building shared by residents of the building. Common areas include lobbies, corridors, stairs, elevators, etc.
Common Elements
Limitations and rules on a group of homes by a builder, developer, neighborhood association and/or homeowner associations; when living in a building, a buyer gives up certain freedoms to be part of a shared community.
Covenants, Conditions and Restrictions (CCRs)
Also known as a Master Deed, is a fundamental document that establishes the existence of and further governs the use and maintenance of a condominium property.
Declaration
Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, and conflict resolution.
House Rules
Generally an agreement to agree. It outlines the terms between parties who have not formalized an agreement into a contract. LOIs are generally not binding and unenforceable.
Letter of Intent (LOI)
A document prepared by the attorneys representing the builders of a newly constructed condominium building. The statement includes information about the number and type of units in the building, the Homeowners Association rights and duties to owners, and a list of any easements or liens affecting the title of the building. In most cases, buyers looking to purchase a new construction condo get the Offering Statement from their agent before they make an offer on a unit.
Offering Statement
The agreement between the cooperative building and the bank lending money for purchase of shares of stock in the cooperative.
Recognition Agreement
A fee paid by a seller or buyer on a housing co-op transaction typically in New York City. It is not a tax, and not deductible as a property tax. It is a transfer fee payable upon the sale of an apartment to the co-op.
Flip Tax
A term used for buying a home and then turning around and reselling it for a profit.
Flipping
