Co-ops are co-ops; and boards can do as they please without any explanation.
â€œCo-op v. Condoâ€ Whatâ€™s the difference?
Simply put, the traditional housing â€œco-opâ€ 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 â€œco-opâ€, must include provisions for management and maintenance of the building(s) and â€œcommonâ€ 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 â€œco-opâ€.
The â€œcondoâ€ advantage of individual unit ownership can be compared to the benefit of being able to â€œchooseâ€ your neighbors in a â€œco-opâ€ setting, where the application process is very often quite selective. In the sale of a â€œcondoâ€, once a price is agreed upon, the deal is done; whereas the â€œsaleâ€ of a â€œco-opâ€ requires approval by the Board of Directorsâ€”which can be (and often is) withheld based upon arbitrary selection criteriaâ€”with no recourse to the buyer or seller if the â€œsaleâ€ is not approved.
â€œCo-opâ€ ownership represents an â€œinterestâ€ (i.e. stock) in realty; â€œcondoâ€ ownership is actual ownership of realty. Price differences reflect demographic and geographic distinctions. You decide whatâ€™s best for you.