Q & A with Dottie Herman

---

Q1 - What is a condop?

A - Unfortunately, the term is used in two different ways, so has two different meanings.  Strictly speaking, a condop is a building legally organized as a condominium, usually with a few commercial units and one residential unit comprising the bulk of the building.  That residential condominium unit in turn is owned by a cooperative corporation (a "co-op"), which has shareholders and tenants, just like a typical co-op, and runs like a co-op in all other respects.  There are two boards of directors, one for the condominium and one for the cooperative, although typically the condo board is comprised of the members of the co-op board, together with one or two representatives from the commercial units.

The term condop is also used casually, and incorrectly, by some in the real estate industry to denote a co-op with "condo-like" rules.  It is often a co-op only because it is a land lease building, or it would have been organized as a condominium, and thus it "feels" like a condo with respect to operations (no board approval for resales or sublets, only rights of first refusal, etc.).

---

Q2 - I put my house on the market and instantly had a buyer and an offer. Now I've been waiting for them to get a mortgage for a few months. What should I do? I am afraid to wait too long for them to get approved.

A - In your sales contract there should be a clause that says how long the buyer has to get a mortgage commitment.  It could be 30 days, 60 days, or 90 days. If that person is over the time limit, determine whether you want to let them try to get a mortgage or not. You may have to move on and get a buyer that can really get financing secured. You want to make sure the buyer is working with a good, reputable banker like DE Capital who can assure you of their ability to get financing. Otherwise, you are taking your property off the market, and betting on a buyer who may not get their financing. If they've been to two or three different banks and they've gotten rejected, the chance of them getting accepted by a fourth is probably not likely to happen. If somebody gets rejected by a bank, generally it's the same reason that another bank is going to reject them. 

---

Q3 - I am thinking of renting out my apartment. I don't know where to begin or how much it would be worth. How do I get started?

A - First, it is most important for you to verify that your building will permit you to lease or sublet your apartment, and if so, for how long.  If you are able to rent, it is best to familiarize yourself with the Leasing/Sublet Requirements and the paperwork required. If you are not hiring a real estate professional to assist you in the process, you can visit our website at www.Elliman.com  to learn about rents for comparable units currently on the market. If you would like to hire a real estate professional, we would be most happy to help you select a Rental Specialist in your neighborhood.

---

Q4 - Why should I buy, instead of rent?

A - A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for many years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.

---

If you have a real estate question for Dottie, please send it to; Reporters@WorldPropertyChannel.com

---