Home Buying in Parkchester>Question Details

Stacy Sales, Other/Just Looking in Bronx, NY

What is the difference between a Coop and a Condo?

Asked by Stacy Sales, Bronx, NY Tue Aug 7, 2012

Help the community by answering this question:


Another way to look at it:


Benefits- typically less expensive than a Condo, Dramatically less closing costs

Disadvantages- usually require anywhere from 10-20% downpayment, COOPs tend to have a Flip Tax when selling (ranges per Coop), harder to sell due to board approvals which in most cases are required
2 votes Thank Flag Link Mon Dec 31, 2012
Looks like you have some very good answers below. One additional item that I would like to add for the benefit of a reader of this forum, would be closing costs.

Coop's usually require a % down at closing (typically 10-20%). Except for Sponsor/ owner of unsold shares units, you have to interview before a board. Although you can purchase title insurance, this is actually rare and all that is required is a lien search.

Condo's can be purchased with many different variations on loans and as a result DP's. You can purchase a condo for example with only 3.5% down, however, you will need title insurance and will have to pay all the other fees title agents collect like Mortgage tax for example.

Othan than the DP, Coop closings are less expensive. Not that this should dictate you choice, but just food for thought
1 vote Thank Flag Link Mon Nov 12, 2012
As a retired realtor, I find that out of 10 stock replies by realtors - not one single agent mentions the fact that coops are priced less than condos. In the NYC area, it's a difference of $100,000. And more. Therefore, does it ever occur to idiotic realtors that buyers are restricted by their pre approvals and don't have a choice between a coop or a condo? Why on earth would a buyer with a pre approval for $500,000. Buy a coop when they can afford a condo? On the other end, how can a buyer with a pre approval for $250,000. afford a condo? Answer: impossible because condo prices are $300,000. & up.

Realtors - instead of giving idiotic stock answers, put some brains into your heads. And yes, I know this question is from 3.5 yrs. ago.
0 votes Thank Flag Link Sat Jan 2, 2016
Condo means that you essentially own and receive a deed for a small section of the big structure typically in NYC an apartment in a condo building, but there are situations when there are group of attached homes in a small condo communities. A co-op can has the same physical setup of a condo but has completely different ownership terms, you actually buy shares of the structure. You do not technically own any real estate, its more like stock in a building.

0 votes Thank Flag Link Sat Dec 29, 2012

co-op you have a lease and shares in the unit, condo you get a title. Different co-op units have different rules and regulations whereas condos are usually same all around.

Antonio Sanchez
Exit Realty Search
3928 E. Tremont ave
Bronx, NY 10465
0 votes Thank Flag Link Thu Dec 27, 2012
hey Now:
I have NOT read the answers below because I have answered this many times and the ANSWERS are always accurate........ In a CO-OP you don't have fee simple ownership (only shares in a corporation (certain tax advantages) where as in a CONDO you own it with BETTER TAX BENEFITS......
0 votes Thank Flag Link Sat Nov 24, 2012
Hi Stacy,

One other major reason is that Coop's will have an underlying mortgage on the building which the Corporations may use to refinance and Cash-out for improvements to the property. The mainteance can increase as the underlying mortgage increases in Balance/Rate. So, if a bad financial decision is made by the Board it can cost the remaining Shareholders.

A Coop is Not considered Real Property. You are purchasing shares of a Corporation. So, like any investment you need to do your Due Diligence into the Corporation.

Feel free to call me if you need some more information.

Boris Bast
Century 21-Benjamin
0 votes Thank Flag Link Thu Aug 16, 2012
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 Tue Aug 7, 2012
Hi Stacy:
When you buy a condominium , you own the apartment and are part owner of the building. While condos sell for up to 30 percent less than a house of comparable square footage, you share in building maintenance and upkeep costs.
In a co-op, you lease an apartment and are a shareholder in the corporation that cooperatively owns and manages the building. Although you don't directly own property, there are tax benefits.

Good Luck!

Miriam Rosa
Associate Broker
Century 21 Metro Star
0 votes Thank Flag Link Tue Aug 7, 2012
I was just reading this page, having once owned a co-op in Manhattan ( I'm a homeowner now), Miriam I just wanted to give you KUDOS, on your brief concise and to the point answer to the question.
Flag Tue Aug 14, 2012
Hello Stacy,
Michael gave you a good answer regarding the difference between a condominium and a co-op. I would like to add that it's sometimes more difficult to obtain a loan for a co-op vs. a condominium as many lenders do not offer financing on co-ops.
I suggest that you work with an experienced real estate agent in the area as they can guide and counsel you through the purchase process and also give you some referrals to lenders.

Good luck to you!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Tue Aug 7, 2012
Hi Stacy: I can definitely help you answer that question. A Condominium means that you have ownership of a fee simple, which means you own real estate. A Co-operative means that you own stock in a company that owns the real estate. Condominiums are easier to buy & sell & rent. Co-ops frequently have restrictions on buying (the Board wants to see the financials of the buyer & can reject a buyer) & also restrictions on renting. Co-ops may have better tax advantages (you can write off the portion of your maintenance that corresponds with the interest on the underlying mortgage of the building). If you have other questions, please feel free to call me at 914-273-9688. Sincerely, Michael F. Levy, Principal Broker, Grand Lux Realty. http://www.GrandLuxRealty.com.

We are looking for more agents & offer commission splits up to 80% with no fees.
0 votes Thank Flag Link Tue Aug 7, 2012
What is the better option getting a co-op or a condominium?
Flag Tue Aug 7, 2012
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