Category → Real Estate
Purchasing A Co-op Property
Have you ever wondered what a co-op is? Similar to a condo, co-ops are recognized by their type of ownership. When you buy a house or a condo, you actually own physical property. But when you purchase a co-op, you purchase shares in a corporation. The corporation is the entity that owns the building you reside in, and you receive a proprietary lease to reside in a particular unit within the building. As long as you own your shares, you can reside in the unit. The lease will spell out any restrictions pertaining to the use of your unit.
Just like a corporation, your shares give you the right to vote. The board of directors is elected by the shareholders. The board of directors is responsible for making decisions and supervising the daily operations of the corporation. Shareholders are required to pay a monthly maintenance fee to cover these costs. Due to the restricted ownership and other financial issues, the average first time home buyer won’t be able to afford a co-op.
If you decide a home is more suitable for your needs, check out these Tustin homes for sale in California.