Tecnyc1, Home Buyer in Bronx, NY

What is a condop ? ? that is how the apt is listed on line.

Asked by Tecnyc1, Bronx, NY Thu Feb 21, 2013

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This question was asked from this property: http://=www.trulia.com/property/3108477408-333-E-75th-St-4G-New-Yor… target="_blank" rel="nofollow">http://www.trulia.com/property/3108477408-333-E-75th-St-4G-N…

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Mitchell Hall’s answer
Hi Tecnyc1

Contrary to some of the well meaning answers the 80/20 tax rule has nothing to do with condops. The simple reason new construction becomes a condop rather than a condominium is because there is an underlying mortgage. A condo can not have an underlying mortgage. A condop can offer advantages to builders and purchaser/owners.

When a purchaser purchases in a new condop they assume debt with the purchase. A portion of the underlying mortgage is allocated to each unit/share.

The Azure at 333 East 91st street was built in 2009. It is a 34 story luxury condop, 305 West 16th street is a glass and steel new construction 7 story boutique condop built in 2011 in Chelsea. The Marais in Chelsea is a condop that doesn't have any commercial or retail space.

The apartment your question refers to in the link above was a rental building that converted to a coop in 1990. Subletting is only allowed for 5 years at a time after owning and living there for 2 years. Much more like a coop.It was not built as a condop.

If you're considering a condop it can offer the best of both worlds. It can offer rules and amenities of a condo, tax deduction, lower closing costs (no NY state mortgage recording tax) like a coop because a coop is not considered "real property" it is considered "personal property." Condops are usually valued in between a coop and a condo.

There is an advantage to buying a condop if you can find one in the neighborhood, room size and price range you require.

Let me know if you're interested in condops. I can let you know what's available in Manhattan's best condops.

Mitchell Hall
Senior Associate Broker
The Corcoran Group
347-921-4255
mhall@corcoran.com
http://corcoran.com/mhall
http://nycblogestate.com
2 votes Thank Flag Link Thu Feb 21, 2013
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
Contact
A condop is a residential building or portion that includes cooperative and condominium ownership structure. The condominium has a residential cooperative unit separate from the commercial unit and or garage unit.


http://nycblogestate.com/2011/09/condops-best-of-both-worlds.html

Mitchell Hall
Senior Associate Broker
The Corcoran Group
347-921-4255
mhall@corcoran.com
http://corcoran.com/mhall
http://nycblogestate.com
1 vote Thank Flag Link Thu Feb 21, 2013
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
Contact
Its a condominium with separate residential and commercial units where the commercial units can be sold separately by the developer or retained by them and the residential units are operated by a cooperative corporation. The commercial space is usually a parking garage or retail/office space.
0 votes Thank Flag Link Sat Mar 2, 2013
Hi, It is a coop that is run like a condo.

Chris
0 votes Thank Flag Link Sat Mar 2, 2013
It is a residential building that includes a co-op & condo ownership structure.
0 votes Thank Flag Link Fri Mar 1, 2013
Condop is a cooperative ownership structure (you would own shares of a corporation rather than the apartment) with condo type house rules (no restriction on sublet, etc.)
0 votes Thank Flag Link Sun Feb 24, 2013
A condop or cond-op in real estate is a term for a residential establishment (building or portion of a building) that includes both a condominium- and cooperative-ownership structures. Typically the condop refers to the residential portion of a building which is treated as a single condominium unit owned through a cooperative-ownership structure.
Hope you understand!!!!

BY:
http://www.findrenttoown.com/maryland | rent to own homes in MD
0 votes Thank Flag Link Sat Feb 23, 2013
Cooperatives are generally organized as not-for-profit entities. To preserve this status under the tax laws, the IRS places restrictions on cooperatives "passive income" (income outside of maintenance payments). Prior to this restriction's repeal in 2007, the 80/20 rule restricted the co-op from achieving passive income over 20 % of its operating budget in any given year. Based upon this old 80/20 rule, a HYBRID of condo and co-op was created, and called a CONDOP. A condop was a condominium in which the developer worked around the 80/20 rule through ownership retention in the project's income producing sources. The sponsor sells the residential units to individuals while retaining an interest in the commercial spaces. The condop structure is condominium ownership in the land by the residential units, and condominium ownership in the land by the developer for the commercial spaces.The residential portion of the property is operated as a co-op. As a result of this arrangement, units are subject to condominium bylaws. The co-op shareholder receives condominium flexibility with regard to sales and subletting.
0 votes Thank Flag Link Thu Feb 21, 2013
Tecync1
A condop is an entity that was created to get around a law that doesn't exist anymore. There used to be something called the 80/20 rule. It stated that if a co-op receives more that 80% of its income from sources other than the maintenance of the co-operative shareholders, the shareholders would lose the tax deductibilty associated with ownership. This was becoming a problem for owners in buildings where the ground floor stores and businesses paid high rent and contributed substantially to the revenue of the building.
An new entity called a condop was then created, where the commercial and the residential parts were each considered a separate condo and the residential condo was owned cooperatively. In most cases, the residential part of the condop functions with more condo-like rules than co-op type rules, but that is not what defines it, contrary to common misconception.
No new condops will be created, as the 80/20 law no longer exists.

Best,
Jenet Levy
Halstead Property, LLC
jlevy@halstead.com
212 381-4268
http://jenetlevy.halstead.com
0 votes Thank Flag Link Thu Feb 21, 2013
Dear Tecnyc1,

ACondop is a co-operative operating with Condominium rules.
Rosia Remy
Real Consultant
Licensed Real Estate Salesperson
CitiHabitats
Rremy@citihabitats.com
0 votes Thank Flag Link Thu Feb 21, 2013
Hi,

A condop is (usually) a 2 unit condo with one condo unit being commercial space (retail stores or professional offices) on the first floor and the upper floors being residential apartments which form the second condo unit which in turn is turned into a coop,or all residential apartments where the lower half is a condo unit made up of rental apartments and the upper unit is turned into a coop. In either case the condo unit that is made into a coop will consistently follow either traditional coop rules and procedures or those of the condo of which it is a part depending on decisions that are made by the coop's board of directors.

Michael Richman
Licensed Real Estate Associate Broker
KIAN Realty
450 7th Avenue Suite 1501
New York, NY 10123
212-757-8268 x220
917-991-2528
mrichman@kianrealtynyc.com
http://www.kianrealtynyc.com
0 votes Thank Flag Link Thu Feb 21, 2013
Dear Tecnyc1,

A condop is a condominium building that has separate commercial and residential units, with the residential units controlled by a co-op corporation. The separate commercial units are typically retained or sold separately by the developer and can include retail space, office space and a parking garage.

Many condops operate by condo rules, but if you are thinking of purchasing for investment, while some condops have flexible subletting rules that condos have, not all do.

If I can answer any more questions do feel free to contact me.

Ross Ellis
Licensed Real Estate Salesperson
Member of Real Estate Board of New York
212.317.7828 direct
770 Lexington Avenue, 10th Floor
New York, NY 10065
rellis@halstead.com
0 votes Thank Flag Link Thu Feb 21, 2013
Generally it's a bulding organized as a condominium with some commercial units, however the bulk is residential; the residential portion is owned just like a co-op ownership structure.
0 votes Thank Flag Link Thu Feb 21, 2013
A condop is a coop with condo rules. Easy purchase and sublet rules unlike a coop, however, the you own shares and taxes are included in the maintenance
0 votes Thank Flag Link Thu Feb 21, 2013
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