Cooperative
Instead of owning your unit, you own shares in a corporation that owns the whole building. The shares give you the right to live in a specific unit. Common in older cities, especially New York.
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Part 1 of 4
Why a seller cares
A co-op sale is a sale of shares and a lease, and the board has to approve the buyer. It adds an interview, a financial review and weeks to the timeline, and a board can decline without giving a reason.
Part 2 of 4
A simple example
Your co-op buyer submits a board package with tax returns and references. The board interviews them in week five and approves in week six.
| The step | What is different in a co-op |
|---|---|
| The buyer's approval | The board's, on top of the lender's |
| The timeline | Weeks longer, set by when the board meets |
| A declined buyer | Back to market, with no explanation offered |
In a co-op, the building chooses the buyer too.
Part 3 of 4
What people get wrong
That a co-op sells like a condo. Ownership, financing and approval all differ, and the board is the biggest difference.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
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