What are some of the basic questions to ask when looking at a co-op?
Co-op ownership raises a number of issues that should be of concern:
- What is the value per unit of the underlying mortgage?
- What is the voting system (one vote per unit or voting based on unit size)?
- Is there a reserve fund for repairs? If so, is it adequate?
- Are major repairs anticipated in the next two years? If so, how will they be funded?
- Is the co-op now facing or likely to face a lawsuit for any reason? If yes, what are the possible damages?
- What pricing trends are associated with the co-op? Are prices rising? Falling? Can you review all sales for the past year?
- Is a property tax rise known or expected?