Legal Question in Real Estate Law in New York

refinance question

Hi, thank you for reading my question. I am refinancing on a co-op. As you probably know, with a co-op you own shares of stock. The mortgage company has requested the original stock deed. My question is, should I give the original documents or only copies? I feel uneasy about giving original documents. I am also worried they will request the original lease and deed. I am unsure which one i have. ALso I never had a mortgage on the property, but will have one after taking this loan. I appreciate your advice very much.


Asked on 8/30/06, 3:35 am

2 Answers from Attorneys
Debra Palazzo Law Offices of Debra Palazzo, LLC

Re: refinance question

You will be REQUIRED to give them the Original Stock certificate and the Original Proprietary lease as security for the loan. This is standard.

When you decide to sell, make sure you let them know well in advance as they may have to retrieve these documents from a central storehouse which can take 4-6 wks.

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Answered on 8/30/06, 6:40 pm
Seth Kaufman Kaufman PLLC

Re: refinance question

Because a coop loan is not secured by a lien on real property (as is a traditional mortgage loan), the lender requires physical custody of the stock certificate and proprietary lease as a measure to protect their security interest in the collateral. Consult an attorney before doing anything if you are not comfortable with and completely understand all aspects of the transaction.

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Answered on 8/31/06, 10:28 pm


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