Home Buying in Queens>Question Details

eloadakah, Home Buyer in Queens, NY

What are the advantages and disadvantages of a coop and condo ?

Asked by eloadakah, Queens, NY Sun Mar 23, 2014

I am trying to buy a home for the first time and friends are advising me not to get a coop. I've seen some that I really like.

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Co-op ownership represents an interest (i.e. stock) in realty; condo ownership is actual ownership of realty. Keep in mind that when purchasing a co-op, boards have their own financial requirements that must be met; each building is different. Simply put, the traditional housing co-op involves the formation of a corporation for the purpose of acquiring title to a multi-unit building and, in turn, leasing individual units (apartments) to the shareholders of the corporation; whereas condominium ownership involves acquiring title to individual apartments or units. In fact, condominium ownership is, for most practical purposes, only one form of cooperative housing and, like the co-op, must include provisions for management and maintenance of the building(s) and common areas, usually dictated by an elected Board of Managers, in the case of a condominium, and a Board of Directors in the case of a co-op. The condo advantage of individual unit ownership can be compared to the benefit of being able to choose your neighbors in a co-op setting, where the application process is very often quite selective. In the sale of a condo, once a price is agreed upon, the deal is done; whereas the sale of a co-op requires approval by the Board of Directors which can be (and often is) withheld based upon arbitrary selection criteria with no recourse to the buyer or seller if the sale is not approved. Co-op ownership represents an interest (i.e. stock) in realty; condo ownership is actual ownership of realty. You decide what's best for you.
1 vote Thank Flag Link Sun Mar 23, 2014
In a coop you will own shares and a condo is real estate. Both co-ops and condos require board approval, hold regular board meetings and come with an ever-changing set of rules for living. Co-ops, however, tend to have a more tedious approval process. A co-op board can and will ask for the most intimate details—financial to familial. There will be a face-to-face interview, which may include pets, and applications can be denied for any reason. Condo boards, on the other hand, only have the right of first refusal, which means members can stop the sale by offering to buy the apartment on the same terms.
0 votes Thank Flag Link Mon Mar 24, 2014
It's more of a preference thing I believe. The downside to buying a co-op is having to deal with the boards. They decide who gets in and who doesn't, based of many different things. Every co-op has the right to decline any buyer for any reason really. I would say this is the biggest disadvantage of a co-op and also the biggest advantage of a condo as they do not have boards and cannot decline any buyer. Good luck! IF MY RESPONSE WAS HELPFUL, CONSIDER CLICKING BEST ANSWER! • Javier Meneses Senior • Loan Officer • NMLS #23130 • STERLING NATIONAL BANK • 290 Broad Hollow Road, Suite 402E • Melville, NY 11747 • jmeneses@snb.com • (516) 606-9648 Cell • (631) 659-2011 Office • (516) 918-5383 Fax
0 votes Thank Flag Link Sun Mar 23, 2014
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