Purchasing real estate in Miami, Florida, can be a big investment, but an alternative housing option that may be worthy of your consideration is a housing cooperative. This is another type of investment altogether, so it is essential to understand what it is you would be purchasing. We at Cuevas and Garcia, P.A., are familiar with the legal and financial aspects of cooperatives and often provide answers to those who want to explore the option thoroughly.
According to the National Association of Housing Cooperatives, when you buy into a cooperative, you are receiving a share in a company. Since this means you would become a part owner, you should first examine the finances of the corporation to ensure that it is solvent and to understand how your fees will contribute to the overall budget of the corporation.
The corporation is the entity that actually owns the real estate, and it may have a mortgage on the property. Upkeep, repairs and other maintenance issues must be taken care of through a general operating financial reserve, which all the members contribute to. The company should be audited each year so that the members can review the financial status.
The board of directors of any corporation plays an important role in decision-making and oversight. Those who are on the board are typically the ones who interview and approve new co-op members. You may want to discover the means of communication between the board and the members and the method for holding leaders accountable for their actions. You can find more information about condominiums and cooperatives on our page.