CO-OP deals

[Arcus 0]

I guess my age is beginning to show. I did my first sandwich L/O and it worked out great. However, for some reason the co-op assignment is confusing me. I understand the paper work with the seller. What do you do about the dates on the contract, the payments, the option consideration amount, etc. if they change when you get your T/B. How are these changes handled, especially the dates of the L/O and Option agreements.

[MichaelC 160]

I guess my age is beginning to show.

Hmm....let me put down my walking stick so I can sit down and ponder your question, Arcus. Hold on....I need to find my reading glasses so I can see the screen......OK, I'm back. Now, for that recipe you wanted.........whoops, wrong forum.....I'm confused.....

Arcus, the Cooperative Assignment can be somewhat confusing until you do one, then the ol' lightbulb goes off and it becomes perfectly clear and second nature.

Think of it this way. You are providing for the seller a tenant/buyer that you would be dealing with personally if this were a sandwich lease deal. You are working for the seller, in other words, and getting him/her the best possible terms for their property.

Now, in order to be able to do this without being accused of brokering real estate without a license, you must be a principal in the deal. So your agreement with the seller gives you the right to assign the deal to the tenant/buyer.

As for the specific terms on the contract, you would put in the expected start up date. If a tenant/buyer comes along and wants possession sooner than expected, if the property is vacant I don't see any problem. Draw up a new agreement, or change the lease start date in the existing one. Not a big issue at all.