Co-Op Vs Condo

Co-op

  • The cooperative corporation owns the building and the tenant (unit owner) owns shares of stock (assigned according to size and type of apartment).
  • Co-ops are governed by a board of directors (resident shareholders) that determines the requirements for applicants.
  • The co-op application process is quite lengthy and may require flexibility in terms of occupancy date
  • Renting in a co-op building is referred to as subleasing. Prospective subleasors are subject to the same application process as someone wishing to become a shareholder.
  • Applicants must provide financial and social information to the Board of Directors and will also be required to attend a personal interview.
  • The Board of Directors may accept or reject applications without furnishing a reason.
  • There are both modern and older co-op buildings, however, most prewar buildings are co-ops
  • Cooperative ownership also involves a monthly maintenance fee (for building upkeep), preservation of common areas, staff salaries, etc.) that is based upon the number of shares assigned to a particular owner. The monthly maintenance charge also encompasses an owner's share of building real estate taxes. This portion of the maintenance is tax deductible.

Condo

  • Condominiums are considered real property.
  • Some condominiums require a purchaser to submit detailed financial and social information. A personal interview is usually not required.
  • The condominium application process can be quite lengthy and may require flexibility in terms of occupancy date.
  • Condominium buildings account for approximately 20% of the total ownership buildings in Manhattan.
  • Use of on-site health club and pool is sometime included in the monthly common charges.
  • Condominium ownership also involves a monthly fee called Common Charges (for building upkeep, preservation of common areas, staff salaries, etc.) that is based upon the square footage of a particular owner's apartment. Real estate taxes are excluded from the common charges and are paid to the City separately. Real estate taxes, are, however, tax deductible.