What is a Co-op Apartment?
A co-op apartment or a housing cooperative is a unit in generally a large building that is leased exclusively to the person who purchases it. Buying a co-op apartment is different than buying a house. Instead of actually buying the property where you live, what you are doing is buying into a corporation, usually a limited liability corporation (LLC) that owns the building. Once you purchase these shares, you have an apartment that you and family get to live in, but renting that apartment out, or doing anything illegal in the eyes of the corporation (like having too many occupants) can land you in trouble. Your co-op apartment, and every other apartment in a building, is subject to the bylaws the corporations establishes, provided these aren’t in conflict with state law. The board can have deciding power over whether or not you can buy a co-op apartment, and may also have the power to deny or approve your right to rent that apartment. They can often turn down any tenants you wish to sub
the well-known disadvantages of a coop include: -not being able to sublet an apartment unless the renter meets the coop board -not being able to buy the apartment unless you are approved by the board (this typically includes credit and background checks) -not owning a real piece of property but shares in a corporation that like any other must be managed and supervised to remain solvent/profitable
