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What is the Difference between a Condo and a Co-op?

I am moving to New York as I have found a good job there. I am talking to people there trying to find out a cheap apartment and I am hearing two words that are really confusing me. A Condo & a Co-op. What is the difference between these two and aren't both of them different names of a simple apartment? I have no idea. Please help.
Asked By Robert S. | 1063 views | Tips Advice | Updated 3 years ago
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Rising Star
26 Answers
Spirit Messingham

Tierra Antigua Realty

(125)

Hi Robert
Here in Tucson AZ, A condominium is a building structure divided into several units that are each separately owned, surrounded by common areas that are jointly owned. A Co-op, a cooperative is "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned enterprise". Cooperatives are democratically owned by their members, with each member having one vote in electing the board of directors. A condo is run by a HOA, usually a management company and Bylaws. Hope helps, best of luck. Spirit
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Keith Watts

Watts Team Real Estate, Inc.

(238)

Spirit M has given a really good answer. I would only add that in California an important factor is the actually Tax Parcel. A condo has an individual parcel ownership with it's own tax bill and a Cooperative has all the units sharing one property tax bill. Not sure any of this matters when renting.

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Peter Rand

Local Homes NY

Hello Robert - Co-ops and condos are similar in that residents live in separate units with shared common areas (i.e., pool, recreation center, tennis courts, playground). The main difference between a co-op and a condo is the ownership structure. When you purchase a condo, you own the actual unit (as you would own a house) and a percentage of the common areas. When you buy a co-op, you are not purchasing real estate, bur rather shares in a corporation; at closing you are issued stock certificates and a lease (called a "proprietary lease") that enables you to live in a unit. There are a number of other issues to consider when considering a co-op vs. a condo, including the way taxes are handled, and whether an interview with the Board is required. I would be pleased to answer any other questions you may have.
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Hi Robert,

This is a common question, especially for people moving to New York for the first time. Both are types of apartments, but the ownership structure is different.

In a condo, you actually own the apartment unit and have more freedom to sell or rent it. In a co-op, you do not own the unit directly. Instead, you own shares in the building’s corporation, which gives you the right to live in a specific apartment. Co-ops usually have stricter board approvals and rules.

Because of these differences, co-ops are often cheaper, while condos offer more flexibility. If you are new to this, it can also help to learn from communities that are professionally managed. Companies like Kirkpatrick Management Company often work with associations and help keep residential communities organized and well managed.

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