The prevalent form of property ownership in Manhattan is an apartment in a cooperative (co-op) corporation, commonly referred to as a co-op. A cooperative (co-op) is a type of corporate ownership of property, in which the stockholders (shareholders) are entitled, by reason of a proprietary lease, to the exclusive use of a certain dwelling unit of space. The value of the unit is based on the number of shares allocated to that space, along with location of the building and services offered. The larger the apartment, the more shares you own. The cooperative corporation is operated by a Board of Directors, elected by the shareholders at their annual meeting. The Board sets monthly maintenance fees, and makes other policy decisions for the property. All prospective purchasers and renters must be approved by the co-op Board of Directors. The co-op Board approval process is often time consuming and rigorous - requiring extensive information regarding finances, employment, and personal background. Many co-op boards limit the amount of the purchase price that can be financed and require higher down payments than are usually required for condominiums. It can be harder to sublet a co-op. Each co-op has its own rules, but many limit or forbid subletting.
Cooperative = the building is owned by a corporation and operated for the benefit of persons living in the building. Shares in the corporation are allocated per apartment and the owners of those shares, called proprietary lessees, may live in the apartment for which shares are allocated.
The next most common form of home ownership in Manhattan is a condominium (condo) unit. A condominium is real property just like a free standing house. It is ownership of an individual property in a multi-unit structure, along with joint ownership of common elements such as hallways, stairs, recreations areas, etc. Condominium owners elect a Board of Managers. The Board of Managers sets the by-laws of the condominium, determines the cost of operation the building and sets the monthly maintenance expense called common charges. Unlike a co-op, a condominium apartment is "real" property. A buyer receives a deed just as though he or she were buying a house. Each individual apartment in a condominium receives its own tax bill. Taxes for condominium units are paid directly to the city and state, twice a year by the individual unit owner.There is still a monthly common charge similar to the maintenance charges in a co-operative. These charges don't include your real estate taxes and are not tax-deductible. They also tend to be lower than in co-ops because there is no underlying mortgage for a condominium building. The straightforward nature of buying a condo coupled with the fact, that in some cases, you can finance up to 90% of the purchase price and sublet them at will, makes condominiums the number one choice for flexibility.
Condominium= units are individually owned; common areas (lobby, elevators, hallways, facilities, etc) are owned jointly with the other condominium unit owners.
Krystyna Rachtan, CNE
Licensed Real Estate Broker
NEW YORK HOME RE
The listing that your question refers to PHG at 310 East 46th Street is a condop.
A condop is a residential building or portion that includes cooperative and condominium ownership structure. The condominium has a residential cooperative unit separate from the commercial unit and or garage unit.
A Coop can have underlying mortgage a condo can not. A condop such as 310 East 46th offers the flexibility of a condo such as 90% financing allowed, No Board Interview and also allows sublets like a condo.
A condop can offer the best of both condos and coops. The rules and amenities of a condo, tax deduction, lower closing costs (no NY state mortgage recording tax) like a coop because a coop is not considered "real property" it is considered "personal property."
Lic. Assoc. RE Broker
The Corcoran Group
Kryztyna explained it perfectly. Over 75% of all apartments are Coop's in NYC. Coop's can be harder to purchase and much harder to sublet. It is different from building to building. Condo's on the other hand are much easier to acquire and to sublet and often gain much more in value.
Please feel free to contact me so I can explain in detail and help you navigate the world of real estate in NYC to ultimately assist you in acquiring the right type of property.
Mark Tabiszewski | Licensed Real Estate Salesperson | Citi Habitats
Languages: English, French, German, Polish, Dutch, Italian and Spanish