WHAT IS AN EQUITY CO-OP?

Before there were Stratas, there were Equity Co-ops.

Co-op stands for"COmpany OPerated", meaning the building is run by a company and as a Buyer you became a shareholder*. The company owns the building and the freehold land. Along with being a shareholder, there is a lease** attached to the shares to identify the specific apartment you are purchasing. The lease is for a predetermined period of time, 25-200 years, which was set when the company was incorporated. Once the lease has come to an end, it is renewed by the shareholders for another term. Often priced slightly below market levels, but offering excellent value and a secure investment, Equity Co-ops may just be Vancouver's best kept real estate secret.

*Shareholder’s Shares can be used as collateral and some banks and credit unions will give mortgages of up to 65%. Some institutions may charge a slightly higher rates.
**Though there is a lease involved, an Equity Co-Op is NOT leasehold land.

CO-OP VS. STRATA

Strata

In a strata, you are the owner of the apartment and a portion of the common areas, which is based on your unit entitlement
A strata has a Strata Council
A strata has Bylaws
A strata has Financial Statements and Minutes

Equity Co-op

In a co-op, you are a shareholder of the company which owns the building AND the land, your ownership is based on the number of shares you own.
A co-op has a Board of Directors
A co-op has House Rules
A co-op has Financial Statements and Minutes
Co-ops are usually a little bit more conservative about their rental and pet policies and most do not allow either
Some have an Age restriction of 19+ for owners
New Owners must meet with the Board of Directors and supply letters of reference

Think an Equity Co-op might be right for you? Check out my listings below and let's chat.