No Out of Pocket Fee for the Conversion
Per unit fee paid only at successful conversion of each unit. No up front fees, expenses of risk, no obligation or cost to co-op or shareholders during conversion process. Conversion fee is based on your unit size and is only a fraction of the increase in unit value and equity immediately achieved as a result of the conversion.
Conversion fees and closing costs are almost always wrapped into your new combined loan (your proportionate share of the underlying mortgage on the building and your own share loan). Condominium fees are used to fund the amounts needed to maintain and support the condominium project as a whole. Generally there is little or no difference in the operating expense of the building, when comparing a cooperative to a condominium, with the exception of real estate taxes.
In a cooperative, real estate taxes are paid by the cooperative out of assessments made against the shareholders. In a condominium, the association pays no real estate taxes and each owner receives an individual real estate tax bill. The maintenance of common elements, insurance and reserve funding is generally identical between the two forms of ownership.
Click here to Contact Us any time with questions concerning your conversion.