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Hi all,
Is it a common practice in coops for the management company of the coop to charge the coop a 1% brokerage fee of the loan amount for a building's mortgage or re-finance of an existing mortgage.?
Thanks
Gary
yes thanks for the input, it is the coop underlying mortgage.
Our building just did a refi.
Hi Gary - Refinancing a co-op's commercial mortgage is almost as complicated as obtaining a new one. It is above and beyond the normal MA services the monthly fee pays for. So IMHO, a 1% commission is not unreasonable.
Congrats on getting the mortgage before the rates go too high
1% is a typical fee for a management company to facilitate a refi for a co-op.
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Are you talking about the co-op corporation's underlying building mortgage or an individual shareholder's mortgage? I'm asking because you mention what sounds like taking the 1% fee for brokering an original mortgage for the co-op corp itself. Almost all co-ops have existing mortgages that get refinanced every 10 years.
That being said, if the MA actually brokered the original or refi mortgage then they are entitled to a fee for services.
The best way to find out what is going on is to ask the board treasurer. They should have the most up-to-date information easily available.
--- Steve
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