The Conversion Process
Step-by-step, Hutton handles every detail
Shareholder Education Sessions
In order for conversion to a condominium to occur, the Shareholders must vote to permit the Board of Directors to pursue the dissolution and restructuring of the Corporation.
Prior to the vote, Hutton, with the approval of the Board of Directors of the cooperative, will schedule a series of educational meetings for you in order to inform you of the benefits, advantages and costs of the conversion and other issues which may affect your vote.
Notices and a Proxy/Ballot for the vote will be distributed to all the Shareholders calling for a Special Meeting. The Shareholder will be asked to vote on a resolution that allows the Board of Directors to pursue dissolving the Corporation and replacing the cooperative with a condominium.
All Shareholders are strongly urged to complete the Proxy/Ballot prior to the meeting date, even if you intend to be present at the meeting. This will assure that your voice is heard and your vote is counted.
The Vote
New Condominium Regime Created
Shareholders will be encouraged to complete loan applications if needed for their individual portion of the debt now owed by the cooperative as well as their own existing share loan.
Assuming the shareholder votes "Yes" to allow the Board to pursue dissolution, we will send out loan applications. Each shareholder will be able to schedule a time to meet with a Hutton representative who will assist in completing their loan applications.
The applications will be taken on-site. Flexible dates and times will be made available so that each shareholder is personally accommodated.
Loan Applications
The Closing
Settlement occurs once all loans have been approved and a closing date has been selected.
The shareholders will close their loans in an escrow or simultaneous closing over a two or three day period. Attorneys will conduct the closings and staff will be available to answer any individual questions one-on-one.
Immediately following closing, shareholders' new deeds and mortgages will be recorded.
Post-conversion marketing is conducted after the building has converted to a condominium.
The purpose of this marketing plan will be to maximize the value of all units in the building by re-introducing the building/complex as a condominium to the real estate community and through limited regulation of the marketing of units as volume and selling prices for a certain period of time
Marketing
The Process of Exchanging
| Cooperative | Condominium | |
|---|---|---|
| Shares in co-op | -> | Deed to condo unit |
| Pro-rata share of underlying co-op debt | -> | Individual mortgage |
| Common interest ownership in "co-op" | -> | Common interest ownership in "condo" |