This is the Difference Between a Coop and a Condo
Typically, co-ops and condos are units in apartment buildings wherein each space is owned by separate owners who pay monthly maintenance fees or common charges. The main difference between the two lies in the way that the owners hold their apartments.
Common only in large cities, coops are handled more like stock shares in a corporation. The corporation has control over renovations, maintenance, and sale of shares. The amount of the share is determined by the size and value of the individual unit. It is nearly impossible to get traditional financing for this type of apartment
. Coops are different from condominiums in several ways. A coop involves buying stock in a corporation that has ownership of the apartment building. Under a long-term property lease
, the building then leases the coop. Owners of the coop pay for items such as maintenance of the building, property taxes, and any remaining mortgage of the building through a monthly fee.
On the contrary, a condominium
is an actual piece of real property, such as a townhouse or house that is divided into separate living quarters. The owner of a condo actually owns the apartment and interest in the common area of the building. He or she is responsible for expenses such as maintenance and operations of the building. However, there would not be a mortgage as with a coop. Most condos have a greater value than a similarly sized coop. The buyer of a condo, however, will have to pay closing costs for taxes and title insurance. Condo ownership is more like buying a home. The unit, generally coupled with part of the common area of the building, is considered a piece of real estate
. When selling or leasing, your unit is a decision you have complete control over.
As you can see, there are many differences between the two types of properties. It's important that you understand these differences as you decide which way to go when moving into your new apartment