I always like to try to clarify questions that you might have regarding real estate. One that comes up every once in a while is the differences between a condominium and a co-op. So I thought I might lay out some similarities and differences between the two types of homes. Both have their pros and cons. You just have to decide, as with other issues such as mortgages, what fits your lifestyle and needs.
There are several similarities between a condo and a co-op.
- Both a condo and a co-op allow you to have ownership
- Both a condo and a co-op let you own part of the building
- Both a condo and a co-op allow the members to elect board members and have a say in the upkeep and maintenance decisions.
- Both a condo and a co-op have maintenance fees for common properties like elevators and the grounds
- Both a condo and a co-op give restrictions as to what you can do or not do in your residence
The differences between a condo and a co-op are also multiple.
| Condo | Co-op |
| You own the residence and have a deed | You own stock in the co-op and lease the residence |
| Monthly fees include building and grounds upkeep | Monthly fees include building and grounds upkeep as well as taxes and usually the fees generated when the building was converted to a co-op |
| Real estate taxes are the owner’s responsibility | Real estate taxes are a part of the co-op’s fees |
| Easy financing | Most lenders will balk at loaning for a co-op due to no deed and some co-op’s require cash to obtain occupancy |
| There is no application process | Some co-op scan deny you occupancy for any reason other than race, sex, religion, or disability |
There are definite pros and cons to living in a condo vs co-op. So talk to your Realtor and make sure you make the right decision before you decide which way to go. Looking forward to talking with you.
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