Co-op -vs- Condo

There are a few key differences between owning a co-op and a condo ...

Those who buy co-ops maintain shares of corporations that own the buildings where their units are. Owning a condo is like owning a house. Those who buy condos receive deeds and specified pieces of real estate. Condos are typically more expensive from purchase to closing.

Applications and Approval Process

Assuming all financials and references are in order, co-ops require an interview and board approval. Condo associations may exercise the right of first refusal but do not require interviews.

Financing

Co-ops require minimum 20 percent down. Condos require minimum 10 percent down.

Estimated Closing Time

Estimated closing time for a co-op after signing contract is 3-4 months.  You can expect to close a condo within 1-3 months after signing contract.

Renovations

You will need proper board approval for renovations with co-ops and condos.

Monthly Charges

The monthly charges, maintenance, for a co-op are based on the number of shares owned in the building. The monthly charges of a condo are based on the square footage of the unit.

Taxes

A co-op owner pays taxes that have been rolled into their monthly maintenance. A condo owner pays typical homeowner taxes.

Subletting

Subletting policies vary based on building rules and regulations. Permission to sublet a co-op would be taken to the board for approval. Condos typically allow subletting.

Selling

Selling a co-op would be subject to selling taxes and board restrictions on who they sell to.