Did you know?
Cooperative (co-op) apartments are in buildings owned by a non-profit
corporation with each stockholder holding a proprietary lease for their
apartment. Co-ops involve the sale of personal property that is
the co-op stock certificate with its attached proprietary lease rights
to occupy a specific unit. But condominiums involve the sale of
real property because the condo owner actually owns the air space within
their condo unit. However, Congress has made co-op ownership tax
deduction benefits virtually the same as for condos. Most co-ops are
located in New York, Florida, Georgia, California, Illinois and
Washington, D.C. A prime reason some potential condo conversion
buildings became co-ops instead of condos is condos are usually subject
to tough subdivision laws, whereas co-ops are much easier to create
because they often don't require tough government approvals.
FSBO Tip...If
you live in a planned unit development such as a condo or
townhome, the buyer will ask for a copy of the homeowner
association rules and regulations. If there is a fee charged to
produce these documents, it is generally negotiable as to which
party pays it.