A "coop," is a corporation that owns a building. As a "coop" owner you own stock in the corporation and a right to occupy a specified unit in the building. There is usually a mortgage on the building itself, transferred to the coop corporation from the original owner of the building.
Modern complexes built for multiple families who share common grounds, services and amenities are called condominiums. These "condos" are individual pieces of real estate that are taxed to you directly. There is no underlying mortgage on the building or property.
When you finance a condo, you get a traditional home mortgage. With a coop, you're taking a "coop loan" to purchase stock in a corporation, not a piece of real estate. As usual, there are pro's & con's in each form and it's important to consult a real estate lawyer prior of making your buying decision. I say lawyer because real estate professionals are prohibited from giving any legal or tax advises.
Contact me @ 415-722-6249 or email@example.com
Also, your local agents who are familiar with co-ops may also be able to advise you how these purchases are handled. Seeing as there is no title insurance purchased with a co-op, do the same terms apply as when going into escrow for a residential property?
In coop buildings, you own a percentage versus a specific unit. Financing on coop units is different than on traditional condos. In San Francisco there are only a few coop buildings. Coops are more popular on the East Coast.
Feel free to call me at 415-200-7202.
There is one lender out there that I believe will do co-ops in some of these odd states, but I am not sure they are licensed in all 50. We now have to be licensed in each state we write business, so I don't keep track of this.
In our area, taxes on coops are lower (one building taxes divided between the owners).
There is no financing for coops.
Prices are usually lower on co-ops, and they don't grow as fast.
Hope this helps,
Beachfront Realty, Inc.
You can't refi it. You can't borrow against it. You usually aren't allowed to sell your share for more than you paid for it. At least in the MH industry. It's really very restrictive in many ways and above and beyond everything else I've found them more difficult to sell than any other type of RE I've ever invested in.
I invested in several of them in Florida and ended up getting stuck with them for quite awhile. In fact a few of them haunted me for well over a year and I was paying at the pump every month for the privilege. Just my opinion and again I'm basing this solely on my experience with MH's.