Peter Rand

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.