Buying A Coop On Long Island – An Important Thing You Should Know!

My clients are on the verge of closing on their co-op. They went into contract on 3/8/10 and we knew it would be plenty of time to close before June 30th so they would get the tax credit. It’s possible they will not get the tax credit and if that happens, the deal is dead.

When you own a co-op that has a mortgage, you have a share certificate that states how many shares you own. That stock certificate is the lien on your co-op and the bank who holds your mortgage has that certificate in their files. When the mortgage is paid off, your bank gives this share certificate to you. You need to hold onto it just in case you ever sell your co-op.

But, our situation is this: The seller’s attorney never called the seller’s bank back in March to give them a heads up that we are going to need the stock certificate at closing. That call was made today. It could take 45 days for the seller’s bank to locate this stock certificate. This is what happens when you have an attorney that doesn’t do co-ops all that often.

I went through a similar situation when I sold my co-op 3 years ago. The only difference is that my bank lost the certificate and my attorney told them to either find it or have a new one made up for $500.00 at their expense. Wouldn’t you know it they “found” it a few days before I closed on my co-op. All was well with the banking world.

As it stands, the bank is Wells Fargo and my client’s attorney has a few contacts there so this all could work out. I will know eventually. I’ve used her for a few of my own real estate deals and she usually gets what she wants but we will see. All I know is that I will cry right along with them if they lose the co-op. They are first time home buyers and have worked hard for many years to purchase their first and probably last home.

So, in the future if you are buying a co-op, have your attorney make sure the seller’s attorney has done co-ops AND to bring up the stock certificate issue from the very beginning. Do not assume all parties know what they are doing.

Jackie Connelly-Fornuff
Century 21 AA Realty

Lindenhurst, NY 11757
Cell: (631) 703-0201
Office: (631) 226-5995 Ext. 242
Email: JackieC@century21aa.com
Website: www.longislandrealestatelady.com
Blog: http://jackieconnellyfornuff.com
Skype ID: LIRealEstateLady

Search For Your Dream Home Today!