A Beginner’s Guide to Condops

A Beginner’s Guide to Condops

A condop is a co-op governed by condominium rules, right? Not quite. Colloquially, “condop” often refers to a co-op that claims to have a lenient board and subsequently operates more like a condominium, but this definition is not actually correct.

In a hybrid condominium-co-op, also known as a “condop,” the building or property is divided into a multi-unit condominium, usually with separate commercial and residential units. For example, in a twenty-story high-rise building, the commercial space on the ground floor may be one condominium unit while the remaining nineteen floors containing multiple residential coop units are considered to be a second, separate condominium unit. The residential unit portion is thereby operated by a co-op corporation, while the commercial unit or units can be retained or sold by the developer.

The portion of the building that comprises the residential condo unit is broken up into small residential co-op units and ownership is largely the same as a typical co-op. Each purchaser executes a subscription agreement to purchase stock in the corporation, and each purchaser is considered to be a tenant-shareholder of the corporation that owns the residential condo unit. Unlike a regular co-op, however, the co-op corporation in a condop owns the residential condo unit rather than fee title to the entire building. The co-op corporation that owns the residential condo unit and the owner of the commercial condo unit would operate the two-unit condominium building that makes up the entire property in accordance with the condominium rules.

It is important for prospective purchasers to know the difference between a condop and a co-op or a condominium building because of the due diligence involved when looking into investing in such property. While one may look solely at the financial information for the condominium as a whole, in a condop, it is necessary to also review the financials of the co-op to determine the financial health of the investment. And it is important to note that a condop will not necessarily have a more lenient board, though this is sometimes the case.

Hopefully this clears up some of the many misconceptions that surround condops. Overall, it is important for any prospective buyer or investor to have a thorough understanding of the rules and policies of any building they hope to deal with, regardless of its label.

Sources:
Vivian S. Toy, What Exactly is a Condop?, N.Y. TIMES, May 20, 2007

NY Times Shares Tips for First-Time Buyers

The New York Times recently published the following article, which should prove helpful to anyone thinking of purchasing a property in New York City. Among other tidbits, the article includes tips on fees and financing, key differences between coops and condos, advice for those needing a real estate broker, and a few tough truths about the bidding process.

The overall lesson of the article is to be informed, flexible, and prepared for any possible bumps in the road throughout the life of the deal, from bidding to closing. We would heartily recommend consulting a real estate professional with any questions about the process.

NYTimes Explores the Art of Soundproofing

In New York City, where multi-unit residential constructions make up the majority of available housing options, the soundproofing of apartments has become a booming industry. This article examines the science and practice of deadening the noise from that clomping upstairs neighbor or bassoon quartet, and how acoustic expertise can help to resolve the noise disputes that can make life difficult for tenants, neighbors, and building management.

Plan to Rezone East New York Passes

The city council recently approved a plan aimed at the rezoning of East New York, according to this article from DNAinfo. The plan, which passed near-unanimously, was lauded by many for its comprehensiveness and its focus on public infrastructure and housing, while others are critical, believing that the plan does not do nearly enough to reign in gentrification in East NYC.

Proponents and critics can agree, however, that the passing of the rezoning plan will certainly alter both the area itself and the value of its real estate. How much so remains to be seen.

Weidenbaum & Harari Quoted in Forbes

We are excited to share a recent article from Forbes, which includes a quote from partner Jack Harari. The article, entitled “Should You Waive Your Mortgage Contingency?,” was written by Roger Ma, and explores the risks and rewards that waiving the contingency can offer. While it can make an offer more attractive in a competitive market, it can also leave the purchaser exposed if they are unable to obtain financing. It is important to discuss the mortgage contingency or lack thereof with your attorney early on in the contract review process.

NYC Real Estate Attorney’s Closing Report: April 2016

Just a few of our recent closings. If you are also looking to buy or sell at these property addresses, you might want to give us a call.

Property Value Transaction
71 Nassau Street, NY, NY $1,115,000 Condo Purchase
457 West 57th Street, NY, NY $630,000 Coop Sale
250 West 27th Street, NY, NY $1,260,000 Coop Sale
1701 Albemarle Road, BK, NY $390,000.00 Coop Refinance
340 East 74th Street, NY, NY $799,000 Coop Sale
300 West 145th Street, NY, NY $575,000 Coop Purchase
919 Mayfield Road, Woodmere, NY $730,000 House Purchase
 175 Diamond Street, BK, NY $685,000 Condo Sale
99-05 63rd Drive, Rego Park, NY $275,000 Coop Purchase
312 West 23rd Street, NY, NY $543,000 Condo Purchase

Barry Weidenbaum Quoted in NYTimes Real Estate Section

We were overjoyed to see our own Barry Weidenbaum quoted in the New York Times this last week. The article, titled “Coop Wars: Do You Dare Walk on the Grass,” explores one of the most (surprisingly) contentious topics facing coop boards across the city: are communal grassy areas made to be walked on, or just admired? At its heart the dispute is part of a generational shift, as younger families bring their own ideas into the coop setting. It also shows how important it can be for purchasers to have a clear understanding of a coop’s house rules–and whether they are subject to change.