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Who Pays for What in a Co-Op?

Updated: Dec 6, 2023

In New York City co-ops, the financial responsibilities are divided between the shareholders and the co-op corporation. Shareholders are the residents who own shares in the corporation. While every Co-Op has it's own individual policies and some may differ, to give you a general idea of how most are run, here’s a breakdown of 'who pays for what' in most Co-Ops:

  • Monthly Fees: Shareholders cover maintenance fees for taxes, staff, and common utilities, varying by unit size and amenities.

  • Mortgage/Taxes: The co-op pays the building's mortgage and taxes, included in maintenance fees.

  • Utilities: Shareholders pay personal utilities, some may be covered by maintenance fees.

  • Repairs/Renovations: Shareholders handle their unit's repairs; the co-op covers common areas, with possible extra assessments.

  • Insurance: The co-op insures the building; shareholders insure personal property and in-unit liability.

  • Flip Tax: Charged on sales, this tax funds the co-op’s reserves, paid by buyer or seller per co-op rules.

  • Reserve Fund: Maintained for emergencies and major repairs via maintenance fees and assessments.

  • Assessments: Levied for significant expenses not covered by the reserve fund or fees.

Buyers should review the co-op's financials and rules for detailed responsibilities. Understanding these financial obligations is crucial for anyone considering purchasing a co-op in NYC. It’s important to review the co-op's financial statements and rules before buying to understand the specific costs and responsibilities.

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