Condominiums and Cooperatives Flashcards
Condominiums are considered…
real property.
Condo owners receive a…
deed a closing.
Condominiums are considered…
freehold estates.
For tax purposes, a condominium is classified as a…
residence.
Cooperatives are NOT considered…
real property.
The owner of a co-op receives a…
proprietary lease at closing.
A proprietary lease is considered…
personal property.
Co-ops are considered a…
leasehold estate.
The leasehold estate gives the right to…
possession of an apartment and use of the common areas.
A condop is a building that includes…
condominium and cooperative ownership in the same structure.
In other words, the building is part condo, part co-op.
The Board of Directors manages…
a cooperative.
The Board oversees the maintenance, finances, and policy decisions of the cooperative.
House Rules are rules in a cooperative that cover common issues including…
garbage disposal, maintenance, noise, and conflict resolution.
Remember: House rules are associated with cooperatives, while by-laws are associated with condominiums.
House rules are generally more detailed than items in the proprietary lease and deal with the …
day-to-day behavior of tenants and general operations.
The by-laws are the…
owner’s rights and obligations for a condominium.
Remember: House rules are associated with cooperatives, while by-laws are associated with condominiums.
The by-laws may include:
- The powers and duties of the Board of Managers
- Sublet provisions
- Restrictions on the use of units and common spaces
- Pet restrictions
Remember: House rules are associated with cooperatives, while by-laws are associated with condominiums.
If a prospective buyer is looking to purchase a unit in a cooperative, the Board of Directors will…
most likely want the buyer to submit a board package.
The board package includes mostly…
financial documents.
The Board of Directors will review the buyer’s board package and use it help determine if they will…
approve the buyer’s application or not. If the buyer’s application is not approved, they cannot purchase a unit in the cooperative.
Condominium contracts typically contain a…
‘Right of First Refusal’ clause. The clause allows the condominium association the first opportunity to purchase the condominium when it goes up for sale.
The developer of a new condominium or cooperative building (or the conversion of a building into a condo/coop) must file an…
Offering Plan with the NY Attorney General’s office.
The first part of the Attorney General’s review is called the…
preliminary prospectus or “red herring”. the Attorney General can suggest any changes to the project. Once the Attorney General accepts the prospectus, it is known as a black book or offering plan.
Although the Attorney General does not regulate price, proper disclosure of price must be…
accepted by the Attorney General.
If the developer of a new condominium building is changing the prices of all (or a group) apartment, he/she must…
file the changes with the Attorney General for acceptance.
CPS-1 stands for…
Cooperative Policy Statement.
A CPS-1 (Cooperative Policy Statement) is used by real estate developers to…
test the market before building a condominium or cooperative building.
The CPS-1 (Cooperative Policy Statement) must be filed with the…
Attorney General.
The CPS-1 (Cooperative Policy Statement) includes rules on how the…
development may be advertised. The developer cannot declare a firm price.
The CPS-1 (Cooperative Policy Statement) period lasts…
120 days from the date of acceptance of the CPS-1 statement by the Attorney General, but can extend up to an additional 60 days.
During the (Cooperative Policy Statement) period, developers can…
advertise and take names of people who are interested, but cannot take deposits or sell the properties. They can talk about price ranges, but nothing specific.
