Real Estate Chapter 15 Flashcards

Cooperative

• Dwelling unit owned by a corporation, where ownership is represented by shares of stock.
• Each stockholder has a proprietary lease for their apartment.

Share Loan

• Loan type using shares of stock as collateral.
• Commonly associated with cooperative purchases.

Proprietary Lease

• Lease issued by a corporation to allow shareholders occupancy rights.
• Tie between ownership shares and residence.

Maintenance

• Monthly fees paid by shareholders to the cooperative corporation.

Sponsor

• Developer or owner who organizes and sells a condominium or cooperative development.

Board Package

• Collection of documents submitted for evaluation by the cooperative board.

Alteration Agreement

• Terms outlined for shareholder changes to their occupied unit, requiring prior approval from the cooperative.

Condominium

• Form of fee simple ownership allowing individual titles to units and shared ownership of common elements.

Condop

• Residential establishment combining both condominium and cooperative ownership structures.
• Typically involves cooperative ownership treated as a single condominium unit.

By-laws

• Documents establishing the rights and obligations of condominium owners.

Common Elements

• Areas within a building shared by all residents, including lobbies, corridors, and elevators.

Covenants, Conditions and Restrictions (CCRs)

• Rules imposed by builders, developers, or homeowner associations that restrict certain freedoms in a shared living environment.

Declaration

• Also known as a Master Deed; a key document defining the existence and governance of a condominium property.

House Rules

• Guidelines within a cooperative addressing common issues such as maintenance, noise, and conflict resolution.

Letter of Intent (LOI)

• Non-binding agreement outlining terms between parties before a formal contract is established.

Offering Statement

• Prepared by builders’ attorneys; includes details on units, owners' rights, and any liens affecting title prior to condo purchase.

Recognition Agreement

• Document defining the relationship and agreements between shareholders, the cooperative building, and lending banks.

Flip Tax

• Fee applied during cooperative apartment transactions, particularly in New York City; not a tax but a transfer fee based on sales.

Flipping

• Process of buying a property and selling it quickly for a profit.

The Stock Interest Allocated to the Apartment

• Refers to collateral used by banks when lending for the purchase of a cooperative apartment.

Personal Property

• Classification of a cooperative apartment indicating it is not real property.

UCC-1 Filing

• Action taken when a loan is issued on a cooperative apartment, ensuring it becomes part of the public record.