What is a Co-op?

What is a Co-op?

I live in a co-op and I love it. I think many people don’t have a good understanding about what a co-op is and the application process. Here is a brief rundown to explain. It is a form of ownership where the owner has shares in the co-op association (the rights to occupy the unit outlined in their occupancy agreement – Proprietary Lease (which is a lease) and has to abide by it and the house rules of the co-op. It is rare for co-ops to allow renting. To rent a co-op, the application process can take 3-6 weeks or even a bit longer. To purchase one, it can take about 60-120 days. Whether you decide to rent or purchase a co-op, you first need to have approval from the landlord or the seller. You must have a signed contract that would then be contingent to the Co-op Board’s approval. All co-ops have their own re-sale application and requirements. Application fees can vary (they range between $250 – $500). You must show good credit and previous employment history (typically at least 2 years’ worth). If you don’t show good credit history or employment history, you may still get approved but you are taking a risk that you will be denied and you will not know if you are approved until the end of the process. One of the final steps of the application process is a formal board approval. The board will invite you to come in for a formal interview. Usually there are 2-6 co-op board members interviewing you (they are co-op owners in the building). They will notify you in a day or so after your interview if you were approved.