Kew Gardens Coops
*Click Here to View Coop Listings in Kew Gardens*
When you purchase a co-op, you become a shareholder in a corporation that owns the property. As a shareholder, you have secured the exclusive use of a housing unit located on the property.
To purchase shares in a co-op, each buyer takes out a “share loan” in the form of a mortgage. The share loan pays the cost of buying into the partnership. These loan payments are repaid to the lender, and co-op residents are also responsible for paying a pro-rata share of the costs of running and maintaining the building. Known as the “maintenance,” these costs are paid to the partnership monthly and charged on an at-cost basis. Prices rise when the cost of goods and services go up.
The property’s mortgage may also be included in the monthly fee: Even if an individual tenant has paid off his or her share of the loan, it’s possible for the building itself to have a mortgage on it, held by the corporation, not by an individual partner. Buyers are entitled to all of the tax deductions enjoyed by homeowners, including the deductions for interest and real estate taxes.
Most Co-Op Applications Require:
- A completed purchase application with details of the transaction and the parties involved
- The signed sales contract
- A detailed financial statement with at least the most recent report for each account listed
- 2+ personal reference letters
- 2+ professional reference letters
- A landlord reference letter
- An employment verification letter
- The last two years of filed federal income tax returns
- Authorization to run a credit and background check
- Acknowledgment of the house rules
- Lead paint, the bed bug, and sprinkler disclosures
- If financing, the loan application, commitment letter, and recognition agreements
- Remit checks for the application fee, move-in deposit, and other fees
Contact us today for any questions.