In a market-rate cooperative members can buy or sell a membership or shares at whatever price the market will bear.Purchase prices and equity accumulation are very similar to condominium or single-family ownership.Since the cooperative corporation does not own any real estate, the cooperative is not in a position to accumulate equity (just as a renter doesn't build any equity).

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This often includes the blanket mortgage property taxes, management fees, maintenance costs, insurance premiums, utilities, and contributions to reserve funds.

Carrying charges must be raised every year to keep up with the constantly rising cost of utilities, supplies and services.

Cooperative will usually also have their members sign a third document, called an Occupancy Agreement.

Occupancy Agreements are usually very detailed, and describe specific cooperative rules on things like noise and pets.

Before a person can join a cooperative as a member they are usually expected to buy a share of the cooperative.

The purchase price of the membership share will vary depending on the neighborhood, the size of the unit, whether the co-op limits resale prices, and whether the co-op has an underlying mortgage for the entire property.

Taxes are assessed on the cooperative as owner of the property.

Even though members don't pay real estate taxes directly, federal tax law allows them to deduct their share of the co-op tax payments, as well as their mortgage interest payments, on their personal income tax returns.

The process for making those decisions will often include a written application, a credit and background check, and usually an in-person interview.

Like any other form of housing, cooperatives may not discriminate based on the protected classes listed in the Fair Housing Act.


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