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11-Jul-2016 06:16

If that happens, “The shares would be combined, and they would receive a new certificate reflecting the new number of shares,” Lipsig says. “People sort of value apartments based on the relative number of shares,” Tierman says.But is there value in having more shares than your neighbor? “A real estate broker could say this apartment has an extra 50 shares because someone at some time thought it was of more value.

Primarily, it’s a disservice to the person who gets more shares, because more shares means paying a bigger percentage of maintenance and other shared costs when in fact there apartment has no greater value than the one down the hall.

Very simply put, shares represent portions of stock in a corporation.

This distinction is what sets a co-op apart from its real estate cousin, the condo.

Condos and co-ops both have to file their organizational documents with the attorney general.

Those documents will outline the initial number of shares and the initial amount of space offered in the plan.

This is kind of a gray area for appraisers, because generally speaking, ‘share’ issues are given nominal consideration by appraisers.” So size does matter when determining share allotments. “By square footage and balconies and penthouses.” Obviously, the larger the apartment, the more shares it will be worth.

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