Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Ny Real Estate > Chapter 14 Co-op Condos > Flashcards

Chapter 14 Co-op Condos Flashcards

1
Q

Co-Op

A

If you are the owner or the purchaser of a Co-op unit you would then get a stock certificate which will have the name of the corporation on the top, have your name on it as the stockholder

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Proprietary Lease

A

is basically a lease just like you would have in a normal landlord situation, except it’s for a longer period of time and it is part of your ownership interest in the corporation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the maintenance fee?

A

That is the common costs that you would share in Co-ops ownership of the building. The maintenance cost could consist of operating costs: fuel, utilities, insurance that might be imposed on it, and the cost for wages and salaries of the employees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Cooperative

A

– A dwelling unit owned by a corporation in which an owner owns stock commensurate with the value of his or her apartment compared to the value of the building as a whole. The stockholder has a proprietary lease to the apartment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Share Loan

A

– A loan in which shares of stock are used as collateral. Typically found in cooperative purchases.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Proprietary Lease

A

– A lease given by a corporation to another. It is often used in a co-op context, where the owner is given a certain number of shares in the co-op, along with a proprietary lease for one of the residences in the building.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Maintenance

A

– Monthly payments by a shareholder to a cooperative corporation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Martin Act

A

(another key term) that governs how these types of interests can be sold and it requires a certain minimum disclosure, key information about the property or the interests, of the property that are being sold.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

red herring

A

’ (and that is a key term that might show up). If you are a broker you are going to see this bound book and on the cover, in red, is going to say that it’s a draft offering plan. So you will always know it’s a ‘red herring’ because it has red ink on the cover. It is still basically a draft, it is subject to negotiation, it is subject to change and of course it is subject to the ultimate approval of the New York State

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Black Book

A

Discloses the original Co-op offering and the amendment update along with rule of the building

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

house rules

A

‘’. The ‘house rules’ really contain the finer details of the day to day life and day to day operations in a co-op or a condominium. And that may be something significant for a purchaser of a co-op.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Board of minutes

A

Those are the written records of what occurs at the board meetings, the board of directors is the governing body of a co-op and they make the basic decisions about what the policies and procedures are for the operation of the co-op and when your review and read through the board minute you may find out that there are upcoming issues or concerns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Financial statement

A

financial statement’ of the co-op. And when you review a financial statement what you are really doing here. (keep in mind we talked about this in Unit number 1)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Sponsor

A

The developer or owner organizing and offering for sale a condominium or cooperative development.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

due diligence

A

is another one of those key terms that is probably going to be on your test. Due diligence is generally the period of time that a purchaser has to review key financial, legal, and title issues, maybe even other issue, maybe environmental issues if it’s not a

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Examples of due diligence

A

financial statement (you need to see how many units were sold or not sold), capital repairs, dissipated life time for roof/foundations, whether there is a reserve fund, what the history is in terms of maintenance or any special assessments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

The Board Package

A

consists of a questioner usually that will require usually the payment of a fee for the review, and within the package you will find a request for financial documentation, personal recommendations, business recommendations, the copy of the contract of sale, and information regarding the ability of the purchaser to close

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What’s included in the Board Package?

A

Financial package Part…

tax returns of the purchaser, usually for a 3 year period

– if they are employed,
– the application of employment,
– bank statements, usually 3 months of bank statements, statements showing any other savings or investment accounts that the purchaser may have liquid assets,
– the net worth or financial statement of the purchaser, and
– loan commitment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Difference between co-op and condominiums

A

Co-op and a condominium is that there are generally far fewer requirements or restrictions on subletting and on purchasing of units. So that might be a good way for you to find a method to get that sale completed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Alteration Agreement

A

It is an understanding between the Co-op and the shareholder about what is going to be done and how long is going to take and it will generally require a copy of a written contract with whoever is going to do the work and the person who is going to do the work in the Co-op is going to need to be a licensed home improver contractor, a licensed electrician, a licensed plumber, and they need to have insurance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Alteration Agreement

A

– Describes the terms under which the cooperative gives permission to a shareholder before making any changes or improvements to the unit the shareholder occupies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Fee

A

Real property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Difference between coop and condominium

A

Real property vs personal property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Why is this legal distinction different

A

First there are different financing opportunities, there are different closing costs, and there are different types of approvals or procedures that may need to be followed in order to sell a condominium than a co-op. And in terms of the advantages and disadvantages between the co-op and a condominium, it is many times easier to finance directly a deed. They will be looking more likely to finance of condominium deed for many purchasers based on the purchaser’s individual’s own financial situation. And once you own that condominium deed you are generally not subject to the same type of restrictions on who can occupy or use your apartment. There’s are no concerns about subletting

25
Q

Condominium

A

– A form of fee simple ownership of part of a structure having multiple units. Owners have title to their own units plus a share of the common elements.

26
Q

Certificate of Occupancy

A

. That is a document that is issued by the New York City Building Department that certifies that property is safe to reside in and it complies with the requirement

27
Q

Construction or conversion

A

Time to get project done

Test the market

?

28
Q

Condop

A

– A residential establishment 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.

29
Q

Acceptance for Filing

A

That’s the formal act by which the New York State Attorney General authorizes the public offering for sale of interest, co-op, condominium, a HOA or a time share. If you recall (and if you are looking ahead on the schedule) in order for a sponsor to make a sale of an interest in real estate they need to file an offering plan under the Martin Act (that is the state law) with the Attorney General.

30
Q

Alteration Agreement

A

– Describes the terms under which the cooperative gives permission to a shareholder before making any changes or improvements to the unit the shareholder occupies.

31
Q

Black Book

A

That is an accepted offering plan, it’s really the basic sale document that you are going to be using when you have customers that come in and look at a co-op or a condominium, they are going to have the ‘black book’ and that black book is going to have special risks in the front, and will also contain documents: the Purchase Agreement, it’s going to have the by-laws in it, it’s going to have a financial statement, it’s going to have a description of the property, it’s going to have prices, it’s going to have an explanation of what the building is and where is located and what is generally being provided as part of that process.

32
Q

Board approval

A

– we talked about that
That is the process in a co-op where the cooperative board considers whether or not the sale of a co-op apartment to a particular purchase should be approved.

33
Q

Board of Directors and the Board of Managers

A

are two very similar bodies.
A board of directors is the governing body of a co-op, the board of managers is the governing body of a condominium. In either cases the directors, or the managers involved are elected by either the shareholders in a co-op, or by the unit owners in a condominium.

34
Q

Board Package

A

– A series of documents submitted for the review by a cooperative board.

35
Q

By-laws

A

– The owner’s rights and obligations for a condominium.

36
Q

Common Elements

A

– Also known as Common Areas; refers to the spaces in a building shared by residents of the building. Common areas include lobbies, corridors, stairs, elevators, etc.

37
Q

Condominium

A

– A form of fee simple ownership of part of a structure having multiple units. Owners have title to their own units plus a share of the common elements.

38
Q

Cooperative

A

– A dwelling unit owned by a corporation in which an owner owns stock commensurate with the value of his or her apartment compared to the value of the building as a whole. The stockholder has a proprietary lease to the apartment.

39
Q

Covenants conditions and restrictions (CCR’s)

A

Covenants, Conditions and Restrictions (CCRs) – Limitations and rules on a group of homes by a builder, developer, neighborhood association and/or homeowner associations; when living in a building, a buyer gives up certain freedoms to be part of a shared community.

40
Q

Declaration

A

Declaration – Also known as a Master Deed, is a fundamental document that establishes the existence of and further governs the use and maintenance of a condominium property.

41
Q

House rules

A

House Rules – Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, and conflict resolution.

42
Q

Letter of intent

A

Letter of Intent (LOI) – Generally an agreement to agree. It outlines the terms between parties who have not formalized an agreement into a contract. LOIs are generally not binding and unenforceable.

43
Q

Maintenance

A

Maintenance – Monthly payments by a shareholder to a cooperative corporation.

44
Q

Offering statement

A

Offering Statement – A document prepared by the attorneys representing the builders of a newly constructed condominium building. The statement includes information about the number and type of units in the building, the Homeowners Association rights and duties to owners, and a list of any easements or liens affecting the title of the building. In most cases, buyers looking to purchase a new construction condo get the Offering Statement from their agent before they make an offer on a unit.

45
Q

Proprietary lease

A

Proprietary Lease – A lease given by a corporation to another. It is often used in a co-op context, where the owner is given a certain number of shares in the co-op, along with a proprietary lease for one of the residences in the building.

46
Q

Recognition agreement

A

Recognition Agreement – The agreement between the cooperative building and the bank lending money for purchase of shares of stock in the cooperative.

47
Q

Share loan

A

Share Loan – A loan in which shares of stock are used as collateral. Typically found in cooperative purchases.

48
Q

Sponsor

A

Sponsor – The developer or owner organizing and offering for sale a condominium or cooperative development.

49
Q

Flip tax

A

Flip Tax – A fee paid by a seller or buyer on a housing co-op transaction typically in New York City. It is not a tax, and not deductible as a property tax. It is a transfer fee payable upon the sale of an apartment to the co-op.

50
Q

Flipping

A

Flipping – A term used for buying a home and then turning around and reselling it for a profit.

51
Q

This document will list the obligations of the shareholder with regards to repairs and maintenance…?

A

Proprietary lease

52
Q

This document lists the obligations of the cooperative with regards to the repairs and maintenance of an individual shareholder’s apartment…?

A

Proprietary lease

53
Q

This Act requires that key disclosures be provided by a cooperative in the purchase of a unit…?

A

Martin act

54
Q

This document describes when meetings are held between Board Members in a cooperative…?

A

By-laws

55
Q

This document provides detailed information about the internal operations of a cooperative…?

A

By-laws

56
Q

What is filed to give notice that a loan was given on a cooperative apartment…?

A

UCC1

57
Q

A condominium contains a minimum of how many units…?

A

2

58
Q

David owns a cooperative apartment in Midtown Manhattan. He would like to know when the Board members of his cooperative meet, as he would like to present architectural plans for the renovation of his apartment. Where should David look to find this information…?

A

By-laws

59
Q

Abe owns a 1-bedroom cooperative apartment, which accounts for a 1.2% ownership stake among the other shareholders. If the annual budget for the cooperative building amounts to $485,000, how much is Abe responsible for on a monthly basis…?

A

$485.00

Ny Real Estate (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions