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A cooperative corporation is governed by a board of
directors elected by the owners. Voting is democratic and
can be one vote per unit or according to
number of shares or percent of ownership. The board is
charged with managing the co-op according to the bylaws,
house rules and articles of incorporation. In many
buildings, boards interview and
approve prospective purchasers.
The purchaser of a cooperative
unit agrees to abide by the co-op's bylaws and house rules
and to pay a proportionate share of the co-op's expenses.
These expenses include operating costs (e.g., staff,
utilities, maintenance and repairs of common areas,
management fees), real estate taxes, and accumulation of
reserves. The co-op's total fees are divided among
individual units based on number of shares, square footage
or some similar measure, as established
in the co-op's articles of
incorporation or other documents. Though this formula
remains fixed, the assessed fees are changed periodically
by the board of directors or membership in line with the
co-op's current total budget.
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Why an Interview? |
| There's a popular misconception that the
interview is an interrogation of a
prospective owner to make sure he or she is "up to
snuff." Nothing could be further from the truth.
Most co-ops view the interview process as an
opportunity for prospective purchasers to discuss how the co-op
operates, what services and amenities are available
and for board members or committee members to answer questions about the community. Most
people come away from the meeting pleased to have
had the opportunity to ask questions and learn more
about the prospective community. |
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