Stay Focused: Word of the Month
Randal: Welcome back to Stay Focused, Focus Real Estate's weekly video blog. We are talking about the word of the month today.
Erik: And our word of the month for this month is co-op.
Randal: Not coop?
Erik: Not coop.
Erik: No, we're not talking about chicken coops. We're talking about co-op, cooperative and it is a form of ownership. It's an alternative to a condo.
Randal: Indeed. So it's an interesting comparison, and people are often confused by it. So we thought we'd bring this to you today just to talk a little bit about the differences. So again, a condominium is a form of ownership, just as co-op is a form of ownership. But they're a little bit different in what their ownership rights are. With a condominium you have deeded space, you are deeded real property.
Erik: That unit or designated space in the floor plan you give a deed, you own that space.
Randal: You own that space.
Erik: In a co-op ...
Randal: Little different.
Erik: You actually buy in a percentage, a share that is a percentage of the space that you're given an exclusive right to use.
Randal: A little different, condominium typically a little less control over owners and what happens in the association. Co-ops often a little bit more control over what happens. Their application process is a little different and you make an offer to purchase on a condominium and you may review condominium documents, but that's on your end. There is no real stopping.
Erik: Cooperative board usually has to screen all of the members who are applying to own in that association.
Randal: We don't see it a lot here, but we thought it was an important thing just to bring it to you just because they're out there. There's a number of co-ops in Boston, not a lot. They do require some special financing because they're different than being deeded real property.
Erik: And they're taxed differently, and their association fee sometimes are a little differently. So it's important for you to know.
Randal: And if you need some more guidance on where to find some more information about that, please drop us a line below, let us know. And let us know if you have any other questions about that.
Erik: Yep, word of the month, co-op.
Randal: Thanks for watching today everybody. Until next time, stay tuned and stay focused.
Randal: And energetic. Coop.
Erik: Not coop.