Home Buying in Port Chester>Question Details

Marro771, Home Buyer in Port Chester, NY

What is the difference between a Condo and a Co-op?

Asked by Marro771, Port Chester, NY Tue Jul 20, 2010

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Hi Marroo:

Excellent answers and responses.

Its a life style question, if you want to belong to an exclusive community a Co-op is the way to go.

Regards
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Wed Jul 21, 2010
Also, in a condo, you get a grant deed. In a co-op, you will get a stock certificate. In most co-ops I sell, the members of a board need to give 'board approval.' The buyer and his or her agent sits with the board as they review rules and regulations of the community and they will verify that you are willing to abide by these rules and regulations.

Best of luck!

Gregory Masi
Gibson International
C: 310-488-4880
E: Gregory@GregoryMasi.com
0 votes Thank Flag Link Wed Jul 21, 2010
Most simply put, with a coop, you own shares in the building with the right to occupy the unit. Your maintenance, etc. are based on the number of shares assigned to your apartment. With a condo, you own the real estate that comprises your unit plus an undivided interest (right to use) the common areas. With a coop, your real estate taxes are a portion of the maintenance. With a condo, you pay real estate taxes separately for your unit as well as a "common charge", which is similar to the non-tax potion of the mainteance you would pay in a coop.
0 votes Thank Flag Link Wed Jul 21, 2010
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. Price differences reflect demographic and geographic distinctions. You decide what’s best for you.
0 votes Thank Flag Link Wed Jul 21, 2010
The difference is in ownership. When you purchase a co-op you become part of the corporation that owns the buiding. You are given stock shares when you close. When you purchase a condo you individually own all the space inside your home and have a common interest in all the outside space. In a co-op you pay a monthly maintaince fee which includes fees for upkeeping the building and also your property taxes. In a condo since you own the property (inside space) you pay your own taxes plus a monthly common charge for upkeeping the common areas.

Hope this helps
Barbara Hallen
Associate Broker
Houlihan Lawrence

bhallen@houlihanlawrence.com
914 391 6608 cell
0 votes Thank Flag Link Wed Jul 21, 2010
Hi, When you purchase a coop you are purchasing shares in a corporation. the corporation is made up of all the shareholders (tenants). you don't get a deed to the unit but a proprietary lease entitling you to take occupancy. Since you don't own the unit you don't pay property taxes like you would in a condo. Your pro rata share of the taxes are included in your monthly maintenance. Most coops need board approval

A condo you own and are responsible for everything inside the unit. you pay a monthly common charge that goes towards complex maintenance and things of that nature. You also pay property taxes like you would on a house. Most condos do not need board approval.
0 votes Thank Flag Link Tue Jul 20, 2010
With a condo, you typically own only the unit you are buying, with an equal ownership in all the common elements. There is typically an association that manages all of the common elements. With a co-op you do not own the unit, but rather shares in a corporation that equate to the percentage of ownership you have. A co-op has certain membership and occupancy rights that are govern by the cooperation. On a practical level, buyers of a co-op typically need to be approved by a board. Condo typical do not have any review process to purchase. If you do a search for either on the web, you will find a lot more detail on the two. I hope that helps.
0 votes Thank Flag Link Tue Jul 20, 2010
My short answer is: Owning a condo means you own a unit in a building with other owners owning their units and all of you owning the common spaces, while owning a co-op means you have shares in a corporation that owns a building and the shares give you the right to sign a proprietary lease and occupy the unit.
Let me know if you have questions, since this is a rough answer.

ArchiREALTOR.blogspot.com
0 votes Thank Flag Link Tue Jul 20, 2010
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