What is the difference between a condo and a co-op?
In a condo, you purchase a unit that you own outright, down payments are typically 10% but may vary and there are no financial restrictions. Your ownership requires you to pay monthly common charges which cover maintaining the building and real estate taxes. Condos also have a board which also reviews applications to see if they want to exercise their right of first refusal which means they have the right to match any offers on an apartment and purchase the unit which is rarely done. There are generally no restrictions on approvals required on what you can do within your unit or whether you can sublet and/or rent it. In a co-op, you purchase shares of the cooperative corporation which entitles you to a proprietary lease. Additionally, you are responsible for paying monthly fees divided amongst all owners and covers the cost of maintaining the building. However, a percentage is generally tax deductible. In order to be accepted into the cooperative, you must also pass a board inspection
