What does it mean to own shares in a coop?
What does it mean to own shares in a coop?
Co-op shares are units of ownership in a cooperative corporation that owns an apartment building, not unlike owning shares in a regular business corporation. The coop corporation’s main asset will typically be the apartment building, and thus each shareholder will own a piece of it through their co op shares.
Can I sell my co-op shares?
Market-rate co-ops are treated like most standard residential cooperative properties, where owners are allowed to sell their shares whenever they want, for as much money as they want. These types of financial market-rate co-ops are very common in New York City.
Is it wise to buy a coop?
The main advantage of buying a co-op is that they are more affordable and cheaper to buy than a condo. This is one reason this type of housing is popular in cities with a high cost of living. What’s more is that you typically get better square footage for your money.
What does it mean to own shares in a co-op?
Even co-op owners themselves are sometimes unsure about exactly what it means to own shares, and how those shares are allocated. Very simply put, shares represent portions of stock in a corporation. This distinction is what sets a co-op apart from its real estate cousin, the condo.
Who is the owner of a co-op apartment in NYC?
Condo Laws – Co-op Laws | NYC Bar Co-ops, Condos, & Lofts If you live in a cooperative (also known as “co-op”) apartment, you are the owner (shareholder) and a tenant at the same time. You own shares in the corporation which owns the building, but you are also a tenant who rents an apartment from the corporation.
When to transfer co-op shares after a death?
The final word: a co-op can require that shares be transferred expediently from the estate, either to an heir or to a new owner. You in turn, once you’re able to get through the initial mourning, have a responsibility to make such a transfer within a reasonable period of time. Adapted from Habitat June 2008.
What happens when you buy a co-op apartment?
When you buy a co-op, you don’t actually buy your apartment; instead, you are buying shares in a corporation that is your building. The size of your share depends on the size of your apartment; buying the shares allows you to occupy a unit in the co-op building.
Even co-op owners themselves are sometimes unsure about exactly what it means to own shares, and how those shares are allocated. Very simply put, shares represent portions of stock in a corporation. This distinction is what sets a co-op apart from its real estate cousin, the condo.
The final word: a co-op can require that shares be transferred expediently from the estate, either to an heir or to a new owner. You in turn, once you’re able to get through the initial mourning, have a responsibility to make such a transfer within a reasonable period of time. Adapted from Habitat June 2008.
What are the rules for co-op apartments in NYC?
Co op rules and regulations in NYC can be extremely onerous for residents. Since owners of co-op apartments are technically tenants vs owners of real property, the board of the co-op corporation which actually owns the building has enormous power over the residents.
Who is the owner of a co-op apartment?
With a co-op, the resident owns shares in the corporation that owns the building, explains attorney Gail Miranda Schmidt of the firm Milbank Tweed Hadley & McCloy. There is a long-term proprietary lease that gives individuals their rights as a shareholder in the company and as a tenant in the apartment itself.