Buying a Co-op in New York City — What You Need to Know

Co-operative apartments make up a significant portion of NYC's residential real estate market and involve a unique legal structure unlike anything in Ontario. Here is how they work.

Coming Soon — This article is in development. The outline and key resources below give you a preview.

What This Article Will Cover

Co-op purchases in New York City are fundamentally different from both condo purchases and freehold purchases:

What a co-op is: you are not buying real property — you are purchasing shares in a corporation that owns the building, along with a proprietary lease for your unit
The board approval process: the co-op board has broad discretion to approve or reject purchasers, and there is generally no legal recourse for rejection (with narrow exceptions for discrimination)
The board package: what is required and how to prepare a competitive application
House rules and co-op restrictions: subletting, renovation approvals, no-pet policies
Underlying mortgage risk: if the co-op corporation defaults on its mortgage, shareholders are at risk
Financing a co-op vs. financing a condo: lenders treat them differently
Maintenance fees vs. common charges: understanding what you are paying and why

Useful Resources

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