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Frequently Asked Questions What is the difference between a Condominium and a Co-op?Owning a Condominium is like owning a home. You receive title to the real estate, pay property taxes to the city and common charges to the Board of Managers. Real estate taxes are tax deductible; however common charges are not. In the past, there was no approval process required for condominium buildings, though recently that has changed. Most Condo subletting policies are more lenient than Co-op policies and are often the better choice for investors. Co-ops comprise approximately 80% of New York City’s housing market. When you purchase in a Co-op you are buying shares of stock in the corporation that owns the building. You will be issued a Proprietary Lease giving you the right to occupy the apartment. You will pay monthly maintenance, which covers the upkeep of common areas, staff salaries, and managing agent fees, as well as real estate taxes and interest on any underlying building mortgage. Should I work with more than one agent at a time?Working with one agent saves you time. In Manhattan, REBNY member brokers share all available listings. Bond is a REBNY member in good standing. How long should it take to find my dream home?The average first-time buyer finds a home within one to two months, but it may be sooner because Bond agents are extremely knowledgeable of New York real estate and can easily match your needs with the available inventory. What will I need to present to a Co-op Board?Generally, Co-op Boards require a purchase application, a financial statement with back-up documentation, personal and financial reference letters, a letter from present landlord, employment verification, business letters of reference, tax returns for at least two years and permission to run a credit check. You will also be required to pay several types of fees. In New York, will I need to hire a real estate attorney?It is highly recommended that both the buyer and seller be represented by real estate attorneys licensed in the state of New York, although it is not mandated. When should I begin looking into financing?As soon as you begin searching for a property to purchase. Can I renovate a Co-op?Each Co-op Board has individual policies regarding renovation. Generally, you will need to fill out an “alteration agreement” describing the exact work you wish to do, which the Board reviews prior to approving the proposed renovations. How much money do I need to put down?When purchasing a Condo, you will generally be asked for a deposit equal to 10% of the purchase price. When purchasing a Co-op, the requirements vary, but a minimum of 20 to 25% of the purchase price is typical, however, many buildings vary. Although it is rare, a few Co-op buildings will not allow financing at all. How long should I expect it to take from accepted offer to signed contracts?Typically the process takes one to two weeks. Your agent will be in communication with the parties on an on-going basis to ensure progress and to handle any issues that may arise. |
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All information presented on this site regarding real property, for sale, purchase, rental and/or financing is from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rentals or other conditions, prior sale, lease or financing or withdrawal without notice. Note: All dimensions and square footage are approximate for the most exact dimensions and square footage please hire your own architect or engineer.