Housing cooperatives (co-ops) are owned and operated by the stockholders or member owners. The corporation holds title to the property, of which the individual units are a part, and each stockholder or member owns a proportionate share of the corporation and right to occupy a defined unit.
For a co-op settlement, all contingencies must be fully satisfied by supporting documentation before settlement can take place, including the requirement that the co-op board of directors approve the purchaser for membership and occupancy.
With a co-op, the nonland or chattel records are searched before closing to determine whether there are any bank liens, tax liens, or other liens filed against the seller of the co-op unit. In a co-op settlement, the buyer pays for the cost to conduct a search of the nonland or chattel records, as well as the transfer and ownership of the seller’s stock/share certificate and lease/occupancy agreement.