Is it good to buy a co-op condo?

Co-op ownership is more suited for long-term ownership; consider it an investment in the building and the community of shareholders. “It’s more intimate and there’s less turnover,” says King-Brown. “Co-ops are great for buyers who want to plant roots.”

What happens if a coop burns down?

If a building or apartment is damaged by fire, the insurance rebuilds it to the state that it was when the building became a co-op. So if an owner has drapes, wallpaper, carpets, furniture, clothing, jewelry, etc., even if something is built into the unit, those will not be covered by the building’s insurance.

What’s the difference between a co-op and condo in Florida?

Florida Cooperatives The major difference between condos and co-ops is in property ownership. You do not “buy” a co-op; instead, you become a shareholder in the corporation that owns the co-op. The loan you take out to invest in a co-op is considered a home loan, not a mortgage loan.

Are there co-op apartments in Palm Beach Florida?

Cooperative Apartments in Florida. While cooperative apartments (sometimes called coop or co-op apartments) are a common form of ownership of apartments in Manhattan, they are less well known in Florida. However, there are certain areas (such as the Town of Palm Beach, which has more than 1,200 cooperative apartment units)…

How does ownership of a cooperative apartment work in Florida?

In Florida, however, there is little consistency in cooperative apartment ownership documents. In some cases, the owner of a cooperative apartment simply obtains a share of stock. In other cases, the owner obtains stock plus a proprietary lease.

What happens when you buy a co-op apartment?

But when you buy into a co-op, you don’t technically buy (or own) the property at all. “You are purchasing shares of stock in a corporation or other legal entity that owns” the building, Hardy says. “You then are allowed to occupy a specific apartment in the building outlined in a proprietary lease that you receive with your stock certificate.”

When did the first co-op apartment come out?

The lease grants permanent rights to residents to live in their units and to use the common elements of the cooperative according to the co-op’s bylaws and regulations. The first housing cooperatives arrived in New York in the late 1800s, and co-ops remain popular in that city.