CO-OP AND CONDO LAWYERS

CO-OP AND CONDO LAWYERS

Rozhik Law Firm PLLC is a highly respected and successful law firm that focuses on co-op and condo board representation in New York City. Our co-op and condo lawyers have represented clients across the state with success.

Homeowners, townhome, cooperative, and condominium associations have responsibilities to shareholders, owners, the community, and one another. Sometimes, they are faced with complicated legal issues – ones that warrant a law firm’s attention. We are one such firm, and have extensive experience with Co-Op and Condo Board Representation in New York City.

Co-op and Condo Lawyers Resolve Disputes

Co-op and condo boards in NYC are usually tasked with the resolution of disputes involving contractors, property managers, shareholders, unit owners, and various other service-based providers. We handle leases for commercial tenants. We also update house rules, as well as act as a transfer agent of sorts for sales and purchases. Sometimes, local NYS and/or NYC government agencies might be involved with these kinds of disputes. When that happens, an association or board should get in touch with a New York-based real estate legal firm – particularly one well-versed in co-op and condo board representation – in order to have their interests properly represented.

Rozhik Law Firm PLLC is a real estate legal firm in New York City with extensive experience dealing with co-op and condo board representation. Our co-op and condo lawyers deal with litigation, disputes, collections, and operational issues.

Delinquent Assessment Collection

• Unit owner bankruptcy or foreclosure.
• Court complaints.
• Payment negotiations.
• Demand letters.

Litigation and Disputes

• Disputes involving administrative agencies.
• Disputes involving unit owners.
• Disputes involving contracts.

Operational Issues

• Transfer agents for boards (drafting and reviewing legal documentation required for transfers).
• Governing documentation and interpretation: regulations, rules, bylaws, and declaration.
• Owner issues, as well as any related concerns.
• Board meetings.
• Lease preparation.
• Contract review.

Co-Op Versus Condo: Understanding the Difference Before Making a Purchase

On average, people buying a home for the very first time in the city will likely have two options at their disposal: some kind of housing cooperative or a condominium. As similar as they are, co-ops and condos are two different things. You need to know the difference before spending your money.

Slate Properties’ Susan Isaacs says that most of the buyers that she encounters aren’t that knowledgeable about condos, let alone co-ops.

A lot of people confuse co-ops with condos, perhaps assuming that they’re interchangeable. A co-op is a building with multi-units, while a condo can be described as a private home inside the building with multiple units. The tenant may have ownership of the property, which is commonly used. Co-op owners, on the other hand, have a share or interest in the whole building. They also have a lease or contract that lets the owner live inside of a unit. Condo owners take possession of a unit, while co-op owners have no such ownership.

Residents collectively own and manage co-ops, all of which own non-profit cooperation shares. According to Isaacs, a corporation can grant a proprietary lease to a resident because it holds the property title. A lease grants residents with permanent rights to live inside a unit and use common elements in the cooperative (as long as they abide by a co-op’s regulations and bylaws).

The original housing cooperatives came to New York during the later years of the 1800s. Co-ops were very popular in the city back then. The National Association of Housing Cooperatives claims that 30% of housing in New York are co-op buildings. Co-ops thrived in Washington during the 1920s – especially around Connecticut Avenue. In 1891, “the Concord” became erected, and is credited as the original DC co-op. By contrast, the original condo wasn’t put up until 70 years later, according to Isaacs. In Chicago, co-ops happen to be quite popular as well.

The Differences in Costs

Based on square footage, co-ops are usually cheaper than condos. They generally provide buyers with greater control as individual shareholders. They also usually come with low closing costs in comparison to condos.

Condos are usually simpler to finance, though. Getting co-op mortgages are easier said than done. Many lenders stay clear of co-ops and/or ask for bigger down payments. The condo fees tend to be lower. The monthly fee that co-op owners can expect to pay will cover security, utilities, maintenance, amenities, property taxes, and the underlying mortgage of the building.

The tax benefits that come with condo ownership aren’t very different. If a mortgage is involved, then the annual interest to be paid on a loan will be deductible. Owners of a co-op building can also subtract mortgage interest to be paid on a co-op. The underlying mortgage of a building and the property taxes that a co-op is responsible for can also be deducted. In comparison to condos, property taxes tend to be lower.

Abiding by the Rules

One key distinction between condos and co-ops is that a majority of co-op boards must approve a potential purchaser first. The advantage to this approach is that you’re able to be selective about who your neighbors are. Unfortunately, when it’s time to sell the unit, the buyer must first be approved by the board, which can postpone the sale. From there, the board may reject an applicant for a couple of reasons – their refusal to obey the regulations and rules enforced by the board, or because of a financial concern.

Many people worry about co-op boards having an alarming amount of power. With that said, co-op buildings came through a lot better than condos did during the most recent financial downturn.

Before the burst of the housing market, many people saw co-op buildings as limiting, as opposed to condos, which are perceived as less restrictive. According to Isaacs, condos began to incorporate restrictions and rules that were once only maintained by co-op buildings.

Can It Be Rented Out?

McEnearney Associates’ David Howell – company vice president and broker – claims that

Howell believes that residents feel invested in their properties when co-op buildings enforce restrictions, which limits secondary rentals. Shareholders feel as though they are part of a community.

Your Community Is Your Building

Russell Rader, the president of an organization called the DC Cooperative Housing Coalition, has been a part of Kalorama’s Westmoreland Cooperative since 1999. He says he was drawn to co-op buildings because a communal atmosphere is nurtured.

Co-ops and condos share numerous advantages – in comparison to purchasing a house, they’re a lot more affordable. No yards need to be mowed, and a building with multi-units can create a community of sorts, heightening security.

Unfortunately, you also have to reside within close range of all sorts of people. Regulations and rules set forth by the association may come across as onerous. Monthly fees may also be alarmingly high.

Regardless, people who reside in buildings with shared ownership typically look out for one another’s homes. Friendships are developed in this kind of habitat, and people are willing to help others in crisis.

Our co-op and condo lawyers provide other legal services as well, including:

• Disturbance, smoking, noise, and neighbor issues.
• Repairs, alternations, and maintenance.
• Mechanics liens.
• Construction litigation and contracts.
• Right of first refusal.
• Bylaw modifications and disputes.
• Sponsor control and offering plan.
• Alteration agreements.
• Amendments/declarations.
• Managing agent issues and agreements.
• Conflict of interest or fiduciary duty breaches.
• Flip tax issues and assessments.
• Common charge and maintenance fee disputes.
• Enforcement and interpretation of house regulations/rules.
• Elections, meetings, and minutes.