CONDOMINIUMS VS. COOPERATIVES
When you purchase a condo you own real property, you buy an individual unit; you are taxed on that individual unit; and you get a warranty deed that you can take to any bank and finance with 10% down payment.
When you buy a cooperative apartment, you buy one share in The Newport Corporation; they actually issue a certificate and lease you the apartment. You are allowed to renovate the apartment (with no increase in tax assessment) and sell at any time for whatever the market will bear. The local government assesses the whole building and The Newport divides it down to your percentage of ownership. The taxes will be included in your Co-Op fee along with heat; air conditioning; basic cable; water/sewer; trash; common area maintenance; insurance & debt service.
Once you have successfully negotiated an Offer to Purchase with the owner, then you must supply a notarized financial statement and three letters of recommendation to the board of directors for their approval.
Since you receive a certificate and not a warranty deed, there are only certain banks that will finance these cooperatives. The reason is that in the event that you default on your mortgage payments, the bank must go after the corporation first before they can get at you, the buyer. List of lenders for the Newport.
If you would like to find out more about the building or to see units available now please call or text me at 414-305-0126 or email me