When searching for your new home on StreetEasy, you might have seen different types of listings. There is often confusion for new prospective homeowners on what is the difference between a Condo and a Co-op. This article will give you a quick understanding of key differences.
A condo and a co-op (cooperative) can look very similar if you just look at the floorplan and photos. The main difference lies in the structure of the ownership for the buyer.
Buying a Condo means that you actually buy the asset and own the asset. This means that you have flexibility in making changes to the unit or renting it out. Whereas, buying a Co-op does not give you that flexibility.
Co-ops, are usually run by a board, therefore, when you buy a co-op, you don't buy the property, but rather just the share of the property. This concept is very similar to owning stocks. Buying the shares of that property gives you the right to live in that unit. However, any changes will likely be subject to reviews by the Co-op board. Furthermore, usually, Co-op buyers need to be reviewed and approved by the board, and the monthly fees are typically higher than a condo. Because of all these reasons, Co-ops are usually cheaper in sale price compared to condos.
Since each Co-op requirements may vary, we recommend reaching out to the listing agent for further information about a specific Co-op