Sunday, August 19, 2007

We finally sold a "REXFORD CO-OP"

The Rexford, as we've reported before, is a totally cool MID MOD building at the Corner of Rexford and Oakey.

We started looking into it for a buyer who's downsizing, but wouldn't think of leaving Very Vintage Vegas. We put the deal into contract on Thursday, and thought we'd say a little more about CO-OPS.
"Cooperative Ownership" is used all the time in NYC, and on the east coast. I only know of 3 here in Las Vegas. A Co-op owner doesn't really own the real estate. The Real Estate is owned by a corporation, and each share of stock comes with the exclusive use of one of the units of the building. Since it's a privately owned company, they have the ability to decide who they want to be partners with. They can look at the credit, and financials, and public record and police record, and do security checks and interview any prospective buyer. Unlike a condo or house, you can have a say as to who moves next door. They are still subject to the fair housing laws. They can't make decisions based on discrimination.
So what you own is a share of stock. That share gives you the exclusive right to USE the unit that's attached to it. Once you own it, and are therefore a partner in the corporation, you also get to be picky about who you let become a partner in the future.
This will be an interesting escrow, since I haven't found an escrow company yet who wants to handle the escrow. It's pretty easy, since there's also no title insurance, transfer tax or recordation at the county. But still they don't want to do it, and can't say why. I'll continue to report on how I figure out how to protect the buyer.

1 comment:

Anonymous said...

Jack, the main reason they won't do it is because they make most of the money through the title insurance they write when selling a property. The escrow fee is usually small and not really a money maker. Also, no "real estate"
is being bought. It appears to be more of a stock transaction.
Much as I despise saying it, maybe an attorney could draw up the proper papers to protect this buyer
if you can't find an ascrow company
that will take care of it. Have you
asked anyone who already lives there how their's was handled? MJ