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Basic Co-op Questions
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.
© 1997 Peter G. Miller. All Rights Reserved.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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