Condominium vs. Co-operative: What’s the Difference?

 Being a homeowner can be irksome and can take the fun out of homeownership itself.  If that’s the case, it might be time to make a move to either a condominium (condo) or co-operative (co-op).

 Condos and co-ops offer the benefit of not having to handle all of the routine upkeep you get in a house, but, as with everything in life, there a pros and cons to both.

 What is a co-op?

 First, please understand that co-ops are unique as far as ownership is concerned. Co-ops are different from condominiums and other residential arrangements because they aren’t considered “real property.” They are “interests in real property.” When you buy into a co-op you are buying shares in a corporation which owns the land and building.  You ownership in the co-op corporation entitles you to an apartment or unit usually embodied in a proprietary lease. But that’s not the only difference between a co-op and condo.

 The basic differences:

 Ownership

 Condo: Buying a condo means you own the real estate, including an interest in common areas.  Those common areas can be lawns, the swimming pool, or the parking garage.  There is no approval process when you buy your condo, and you don’t get a chance to pick your neighbors.

 Co-op: When you buy into a co-op apartment, you’re buying shares that entitle you to a portion of the building. A co-op board will have to approve you in as a new owner.  Proceedings, in the vast majority of cases are not subject review.  When you sell your co-op, the buyer has to go through the same procedures you did when you bought.

 Fees and expenses

 Condo: Condos charge maintenance fees, usually on a monthly basis. This covers maintenance costs for the building’s common areas.  They can include expenses ranging from lawn maintenance, pool upkeep, snow removal and certain routine maintenance that all buildings need.  See below about real estate taxes and mortgages.

 Co-op: Co-ops will also charge fees, but they are often higher in a co-op and sometimes include items like utilities. They will include a proportionate share of the building’s mortgage and real estate taxes.  See below.

 Keep in mind maintenance fees for condos and co-ops may increase over time.

 Cost

 Condo: Condos usually cost more to buy than a co-op, but you have more flexibility with your investment. It’s usually easier to sell or lease out a condo.

 Co-op: While co-ops will have higher fees, the initial cost of buying into a co-op is usually cheaper than a condo. However, it is almost impossible to rent out your co-op apartment.

 Property taxes

 Condo: Condos are individually owned, so owners are taxed separately just as they would be in a single-family home.

 Co-op: Co-ops are considered a single property, with a single property tax assessment that is split among the owners and usually included in the maintenance fee. Property taxes are typically lower on co-ops than on condos.

 Tax deductions

 Condo: If you own a condo, the mortgage interest and property/real estate taxes are deductible – just like a home.

 Co-op: Co-op residents can deduct their share of property taxes and mortgage interest.

 Disclaimer:

The information included is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Vested Land Services LLC and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. 

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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What Are the Duties of a Title Agent?

By Stephen M. Flatow, Counsel, Vested Land Services, LLC

 

Title agents such as Vested Land Services LLC play several important roles in real estate transactions- whether residential or commercial. Title agents generally act as the agent of the title insurance company.  Its job is to examine and review title, facilitate the closing, record documents in the appropriate county office, and issue insurance policies to the buyer and the lender.

 Title Examination and Review

A Title agent should be using experienced title searchers and be staffed by examiners with years of experience in the industry.  After receiving the title report from the searcher, the examiner, or reader as she is sometimes called, reviews the search to determine the status and condition of title to the subject property. Title agents generally provide this information in the form of a Commitment to Insure Title.

 Some Title agents also provide title information for the purpose of foreclosure actions, and estate planning and disposition of real property.  A Commitment is not issued.  Instead, a letter report is used.

 The Settlement Agent for Real Estate Transactions

 Title agent are very frequently the settlement agents for real estate transactions. As settlement agent, the title agent works with the buyer’s and seller’s attorney, as well as the mortgage lender to bring the transaction to closing.  The Title agent obtains signatures on all of the closing documents, and the title company also receives and distributes payments related to the conveyance transaction. After the parties have signed all the documents, the title company will record documents that need to be recorded, such as deeds and mortgages, in the local county land records office.

 Title Insurance Issuer

 Vested Land Services LLC, is a policy writing agent for three national title insurance companies.  As such, we issue policies of title insurance on their behalf.  We earn our income via a commission for issuing the title insurance policy and are licensed by the State of New Jersey.

 Well, there you have it.  Short, sweet and to the point.

 Any questions? Give us a call!  We’re here to serve.

 We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

 

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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New Jersey's tax sale law; city wins; property owner cannot get back his property

Tax foreclosure causes owner to lose title to real estate.

Municipalities earn most of their income through the collection of real estate taxes. In New Jersey, when taxes aren't paid, the municipality has the right, indeed the obligation, to collect those taxes by selling the lien representing those unpaid taxes. If the lien is not sold, the municipality becomes its owner. (The lien is represented by a tax sale certificate that is recorded in the land records.) If the lien remains unpaid, then the municipality has the ability to foreclose on that lien, take title to the property, and then sell it n order to recoup the unpaid taxes.

Sometimes, after the title has been acquired by the municipality, the owner "wakes up" and tries to reclaim the property. In a recent case involving Newark, New Jersey property, the former property owner gets it in the neck for a) not paying the taxes, and b) trying to bamboozle the court into reopening the case after title was acquired by foreclosure.

As discussed in the Court's Opinion involving an investment property, none of the foreclosed owner's arguments were persuasive and the Court would not set aside the foreclosure.

Our office deals with tax liens on a daily basis. Our advice, pay taxes when they are due!

We deal with municipal tax liens on a daily basis and over the past 40+ years.  If you think we can help you, or if you have a question regarding unpaid municipal liens in New Jersey, let us know.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

Medicaid liens in New Jersey

If your parent owns a home in New Jersey and is a Medicaid recipient, you may be surprised to learn that the State of New Jersey has a lien on the home after your parent passes. 

Per the state's information page:

Under federal and New Jersey law, the Division of Medical Assistance and Health Services (DMAHS) is required to recover funds from the estates of certain deceased Medicaid beneficiaries, or former Medicaid beneficiaries, for all payments provided through the Medicaid program for services received on or after age 55.

This is done via a lien that comes into being after the death of the recipient. 

An interesting discussion can be found on the website of elder law attorney Donald D. Vanarelli, Esq. You can read it here.

We recommend that an attorney be consulted as a parent ages in order to take advantage of estate planning that may reduce the impact of the Medicaid lien, and, if your parent may have been receiving Medicaid, that you consult an attorney before you probate a Will or apply for administration. 

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

Good column from NJMoneyhelp.com.

  

When we sell our house, should we rent instead of buy?

Q. My wife and I would like to downsize the home we live in now since our kids are gone. We built the house 41 years ago and it has served us well. We intend to stay nearby so we can see our grandchildren. Our home has been paid off and we think now is a good time to sell but not really a good time to buy. We are considering renting for a year or so. Any thoughts?

— Seller

A. You’re correct that we’re certainly in a seller’s market, with many homes getting multiple offers and even price wars among potential buyers.

Your question is a common one.

It seems your strategy would work out to your benefit if there are a few key assumptions made, said Ken Van Leeuwen, a certified financial planner with Van Leeuwen & Company in Princeton.

One consideration is how you would be investing the proceeds from your current home.

“Investing the proceeds would make the math work more in your favor, instead of keeping it in a cash account earning next to nothing,” he said.

It’s also important to note that you don’t want to take too much risk with any funds you will need in the near future.

You are also assuming that the housing market will “cool off” and there will be a more interesting home at a better price in the future, he said.

In that case, renting can make a lot of sense for families looking to maximize their current home value without buying another property at all-time high prices.

He recommends you stick with a 12-month lease when you rent, noting that many rentals will allow you to break the lease early, but you would be responsible for the monthly payments until the unit is rented to someone else.

“This could still be cheaper than paying an increased monthly rent for a shorter period of time,” he said. “Just make sure to check the lease to see what your options are for breaking the terms early.”

Email your questions to Ask@NJMoneyHelp.com. This story was originally published May 25, 2021.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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