While it is true that cooperative apartments have their advantages, they also have their disadvantages. Advantages include, for example, lower prices.
You can have a cooperative flat if you are a member of a cooperative group registered in the commercial register.
These flats are for the exclusive use of cooperative members. Cooperative members do not own the flats; they are merely tenants. The sale or purchase of a flat only represents a transfer of the member\’s rights in the cooperative. The building is owned by the housing cooperative. The building cannot be pledged as collateral.
It is possible, however, to transfer an apartment in a cooperative to private ownership. The decisive factor is the price, which is not expensive. After transferring to private ownership, it is also possible to transfer the flat as collateral. Do not assume that just because the price is low, it is only low. There may be something behind it, such as outstanding payments.
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The biggest advantage of buying and selling is speed. It can be done within a few days. Selling a flat has the advantage of not having to pay real estate transfer taxes, since the transfer of membership rights in the cooperative only takes place.
However, one must be careful, especially when purchasing a condominium. One should ask for a rental agreement from the owner, confirmation that there are no debts associated with the condo, and confirmation from the cooperative that they are indeed members
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As a buyer, you should always verify that the cooperative is repaying the loan because the rent may increase. This may sound complicated, but in reality there is nothing to it. However, it is important to research everything in advance to avoid unnecessary problems later.
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Assignment and ownership are considered to have taken place when the contract is delivered and signed by both parties. Take great care to avoid any oversights. You can be sure to have the contract drawn up or at least checked by an experienced attorney. On the contrary. It is definitely in your best interest to do so.
