Question: What are some of the basic questions to ask when looking at a co-op?

Answer: Co-op ownership raises a number of issues which should be of concern:

1. What is the value per unit of the underlying mortgage?

2. What is the voting scheme -- one vote per unit or voting based on unit size.

3. Is there a reserve fund for repairs? If so, is it adequate?

4. Are major repairs anticipated in the next two years? If so, how will they be funded?

5. Is the co-op now facing or likely to face a lawsuit for any reason? If yes, what are the possible damages?

6. What pricing trends are associated with the co-op? Are prices rising? Falling? Can you review all sales for the past year?

7. Is a property tax rise known or expected?

Etc.