Co Ops? Maint?

[NewYorkYankee]

Hi everyone, Im moving to NYC in about a year...plan on going to college there...ANYWAY...I was looking at apartment sales and Ive seen the word "Co-Op"...what does that mean exactly? And also it gives the price for maint. do you pay for this every month? even after you pay off the apartment and own it? And what exactly do you get with the maint. fee? THANKS!

[TonyO]

A co-op is a type of ownership for the majority of apartments in NYC. It comprises a group of shareholders (tenants) who own a portion of the building (shares), in the form of a corporation.

Yes, the maintenance fee is paid monthly. It pays for new boilers, new roofs, the super's salary, and doormen if the building has them. Some maintenance fees can be tax deductible, inquire about this.

The process of buying a co-op is different from a condo in that you have to be approved by the co-op board. Some boards can be very easy while others are very difficult, it depends on the building and the other owners. The board will have scheduled meetings, ask to see meeting notes from previous meetings. That will give you a sense of what you can expect. At the same time, you need to have your loan commitment letter scheduled and your loan in process.

You will need a lawyer. Do not use a lawyer the seller recommends as this is a conflict of interest. Find your own by recommendations from people who have bought. A lawyer will cost you around $1500 for a closed deal (dependent on the price of the co-op).

Make sure you like the place before you commit to signing a contract. Often, "buyer's remorse" enters the picture and you could be stuck. Have a list of flexible wants and inflexible ones. You will most likely pay at or near the asking price for a NYC apartment because the market here is still strong. Don't nickle and dime the seller, a few thousand extra for your offer may only come to $50/month.

There's more to it, but that's a start.