What is The Hutton Difference?
When a Cooperative contracts with The Hutton Group to design, coordinate and manage its potential conversion to a condominium, it assures several key elements:
• Turn Key Service – All Hutton conversions are managed from cradle to grave. Nothing is outsourced and every possible obstacle is anticipated and contingency plans are in place to address them.
• No Surprises – All costs are generally fixed and fully disclosed from the start. Regardless of the effort, time or expense needed, the cost to the members do not change.
• Guaranteed Success – Since Hutton NEVER charges any fees upfront, the Cooperative and its members remain risk free and pay nothing unless their conversion is a success.
But Hutton’s services and success rate is quite unique. In fact, others who purport to have experience in providing conversion services can hardly demonstrate the track record that Hutton has in successfully converting thousands of co-op units to condominiums across the country. Hutton covers all the bases during the conversion process so that nothing is left to chance which can prevent a successful conversion. The chart below provides further details on what makes Hutton the only real specialist in converting a Cooperative to a Condominium. We invite you to experience The Hutton Difference.
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1. Feasibility Study & Customized Unit Analysis |
Provide standard breakdown of costs to convert and projected condo fees. |
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2. Member Survey |
Little to no surveying of current Member’s debt and status. |
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3. Meeting with All Members, Group & One-On-One. Off-Site Owners Interface via Email, Web Seminars, Skype, etc.; Senior Luncheons; |
Limited meetings, generally in large settings. Meetings are conducted by property managers, lawyers or clerical staff NOT dedicated to co-op to condo conversions. Very Limited individualized meetings. Limited hours of live support; No special senior meetings to address their special issues.
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4. Pre-Approval by Lenders for Financing for Members. |
No Primary Lender available, especially in pre-vote period. Members have NO assurance of loan availability before voting. |
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5. Full Process of Voting on Conversion; Voting Package; FAQ’s; Outreach to Assure Voting by All Members. |
Limited or No outreach plan to assure full participation. Once voting is complete, limited contact with owners to arrange financing since financing is not part of the guaranteed services. |
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6. Analysis of Existing Co-op Governing Documents and Draft of Condominium Governing Documents; Prepare the New Condo Budget. |
Limited consultation regarding governing documents for the New Condominium
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7. State and Local Approvals, Exemptions and Registrations. Interface With Local Tax Assessor |
Limited or NO interface with government officials
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8. Full Title Search and Assessment to Assure Proper Chain of Title Before Deed Transfer |
Title Policy for each unit is NOT secured at conversion of the property. Each owner is responsible for their own title policy. If there is any break in chain of title or corporate stock records, title insurance may be unavailable. |
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9. Arrange Unit Owner Financing of the Conversion with Lenders; Fannie Mae and FHA; Reverse Mortgages; Home Equity Loans; Collateral Replacement for Existing Share Loans (Personal Mortgages) |
Members are left to find their own financing. No coordinated approval of Fannie Mae, Freddie Mac or FHA approvals. Most banks will NOT accept the cost and responsibility of applying for and obtaining project approvals. Without these approvals, financing options will remain limited. |
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10. Assignment of Ownership Interest; Transfers to New or Existing Trusts; |
Limited or NO involvement in transferring interest as part of conversion; causes unnecessary expenses |
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11. Transfer of Insurance and Contracted Services; Draft Transfer and Conversion Documents for Title Company Review; Proven and Proprietary Documents to Address Federal and State Taxation Issues. |
Tax impact due to transfer of deed is significant (in the $ Million) unless transfer documents are prepared, executed and recorded correctly.
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12. Formation of New Condominium Association; Analysis of Existing Co-op Governing Documents and Draft of Condominium Governing Documents; Prepare the New Condo Budget. |
Require the Co-op pay for some of these costs. Limited or NO such services provided.
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13. Group Pre-Closing Preparation; Prepare and Distribute Conversion Closing Documents; Coordinate and Manage Group Closings |
NO coordinated closings to fund payoff of underlying debt of the Co-op, if any. Members must find their own financing to exit the Co-op. No assurance that the vast majority of owners will actually be converted. Expensive bridge financing is often used with no assurance of conversion success. |
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14. Arrange for Proper Recording Mortgage Transfers as Collateral Replacement; Arrange for Recordation of Deeds and New or Existing Mortgages. |
Typically not provided as a service and left to chance of being executed correctly to avoid unnecessary taxation issues or cloud on title |
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15. Assist with new Condominium Association in Organization, Election and Management |
Limited or NO such services provided.
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