I've seen several listings that are designated coop. What is a coop?

Asked by DRJackson3, Hallandale Beach, FL Sat Jun 22, 2013

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11
Fred Herman, Agent, Staten Island, NY
Sat Jun 22, 2013
coop - you don't own property. you own shares in the corporation that owns the property.

When you buy a coop you are buying shares; those shares give you the right to live in a particular unit in the development (a proprietary lease). along with the rights you receive you also receive the obligation to abide by the association's rules & regs.

as a share holder you have a say in how the Home Association manages/spends the money (the hoa fee) collected from all the (share) owners in the development.
1 vote
John Bourassa, , Fort Lauderdale, FL
Sat Jun 22, 2013
DRJackson3,

(Boy, the questions we get on this site).

A "coop" is also a hen house for farmers to keep their female chicken for egg production. That eventually became wildly known as "chicken coop". Later, men of leisure fondly used that term "Chicken coop" in a different context, preferably as an endearing synonym for "brothel".
1 vote
Andre Shambl…, Agent, Miami, FL
Sat Jun 22, 2013
A co-op apartment or a housing
cooperative is a unit in generally a large
building that is leased exclusively to the
person who purchases it. Buying a co-op apartment is different than buying a house. Instead of actually buying the property where you live, what you are doing is buying into a corporation, usually a limited liability corporation (LLC) that owns the building. Once you purchase these shares, you have an apartment that you and family get to live in, but renting that apartment out, or doing anything illegal in the eyes of
the corporation (like having too many
occupants) can land you in trouble. Your co-op apartment, and every other
apartment in a building, is subject to the
bylaws the corporations establishes,
provided these aren’t in conflict with state law. The board can have deciding power over whether or not you can buy a co-op apartment, and may also have the power to deny or approve your right to rent that apartment. They can often turn down any tenants you wish to sublet your apartment to, if their tenancy would somehow conflict
with co-op rules, and some co-op boards can be fairly picky and deny without cause your proposed rental of the apartment to any tenants they deem unsuitable. The board also must approve any person to whom you wish to sell your co-op. Co-op apartments were thought an. excellent solution, particularly in New York City, to the many owners of apartment buildings who wanted to get out of the
rental market. New York City has some of the strictest rent control laws in the US, and many apartment building owners were just not making the money that was enough incentive to continue operation of a building. Yet there weren’t that many single
buyers who could or desired to purchase large apartment buildings. By individual tenants forming a partnership in which each member owned shares in a building, and owned the right to occupy a specific part of
it (an apartment), people could join together to purchase their building, often getting slightly lower interest rates and prices than they would if they purchased an apartment in a non co-op building. Of course this idea didn’t always work well.
People who paid very low rent due to rent control were forced out of buildings that were turned into co-ops if they couldn’t afford to purchase into the corporation. You had to have the money, generally to pay for a down payment on your apartment, and to
make the payments that would be required thereafter. Moreover, many co-op apartment owners also have to pay fees analogous to those that might be paid by members of a home owner’s association, in order to keep the building and any of its grounds maintained properly. In some ways, the owner of a co-op apartment is still like a renter. Large buildings frequently have maintenance people on payrolls to help fix basic problems in the building. The co-op also makes decisions through the board, and by each member voting on when to conduct routine maintenance like painting or re-carpeting common areas. If your furnace or plumbing goes out, just like a renter, you’d call the maintenance person. Individual shareholders may have the right to paint or redecorate their own living space, provided they don’t do anything that would not conform to co-op laws. Though co-ops tend to be cheaper to buy, they can also be harder to sell. Much depends upon how good the board is, how restrictive their rules are regarding renting or subletting, and the degree to which the co-op keeps up on maintenance.
1 vote
jiejie0810, Home Buyer, Wilmington, NC
Thu Oct 16, 2014
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0 votes
Chester Free…, Agent, Fort Lauderdale, FL
Sat Jan 4, 2014
Don't let one person's experience with purchasing a Co-op sway your decision on acquiring one yourself. Usually, there are two sides to every story. I just had a transaction cancelled by the Association of a Co-op because the Buyer (not mine) was arrested 5 years ago on a felony charge. His lawyer got him off but it still showed up in the Background check . Whether they mentioned on the application, or not is another question.

Some Co-ops have already purchased the land lease on the property and you can find that out by having your agent ask the questions before you make a decision. If you need any other questions on any issues answered please feel free to give me a call at 1-754-999-0718 Chester Freels at Charles Rutenberg Realty, Fort Lauderdale, FL...
0 votes
Maria Cipoll…, Agent, Coral Springs, FL
Thu Jan 2, 2014
When you buy an apartment in a co op building, you became a shareholder. Co-op are own by a corporation. Meaning you are actually not buying real property.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
0 votes
Timothy Smith, Agent, Davie, FL
Mon Jul 15, 2013
Co-ops are generally cheaper because you are not actually buying real estate, you are buying shares in the corporation. Personally I would go with a condo. I knew someone who bought into a co-op and was forced to leave because the other tenants wanted them out. Be careful.

Dee Vanover, Broker-Associate
Timothy P Smith PA
954-370-7291
0 votes
Patricia Sal…, Agent, Fort Lauderdale, FL
Sun Jun 23, 2013
Another difference between a condo and coop, is that a condo owns the land the building sits on and coop does not own the land, it leases the land.
0 votes
Marina Sarab…, Agent, Fort Lauderdale, FL
Sun Jun 23, 2013
Not to give you the same information that has already been submitted--I would add, however, that many co-ops do not allow renting. The residency application process is also greatly different than if you were to purchase a condo. if you would like detailed information about a certain co-op, please give us a call.

Thank you

MARINA SARABIA/.KATHLEEN COSTANZO
KELLER WILLIAMS REALTY PROFESSIONALS
954-914-8060
0 votes
Robert DiAlb…, Agent, Coral Springs, FL
Sun Jun 23, 2013
Coop stands for Cooperative in contrast to a condominium. Google Cooperative living.
0 votes
Susan J Penn,…, Agent, Weston, FL
Sat Jun 22, 2013
A type of residence where the buyer owns shares in the corporation that owns the building and has the right to live in a specific unit, but doesn't actually own the space.

Susan Penn, PA, SFR
http://www.susanpenn.com
Esslinger-Wooten-Maxwell Inc
2000 Main Street
Weston, FL 33326
954-557-5993
E-mail: penn.s@ewm.com
0 votes
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