Key Terms

Appraisal
Assessment of the property’s market value, typically done for the purpose of obtaining a mortgage.

Co-op Shareholder
Owner of a co-op unit, since what they are actually purchasing are shares of stock in the co-op corporation.

Common Charge
Monthly maintenance fee paid by condo owners. Property taxes are not included in the common charge.

Debt-to-Income
Ratio The percentage of an individual’s monthly gross income relative to the amountof debt owed.

Maintenance Fee
Fees paid by co-op shareholders that contribute to building operations and real estate taxes.

Financial Statement
A formal record of all  your financial assets, debts, and liabilities.

Contract Deposit
A percentage of the agreed- upon purchase price paid by the buyer at the time of signing the contract. Typically 10% of the purchase price.

Flip Tax
A tax levied by a co-op and paid by the seller or buyer when a sale is made. They are designed to generate funds for the co-op’s cash reserve.