CONDO vs. CO-OP vs. COND-OP

The residential market in New York City primarily consists of co-ops (70%) and condos (30%), and very rarely cond-ops. Each property type has its distinct advantages and disadvantages. There are some key differences between owning a condo and owning a co-op.

Condominium Purchase: Condo owners buy the apartment and also own a percentage of the common building areas, i.e. entrance areas, hallways, recreational areas, etc. The condominium is considered real property and therefore the owners have the right to use the property any way they see fit. Owners pay property taxes which can either be escrowed into a part of a monthly mortgage payment or are paid annually as an expense. Monthly maintenance fees are generally paid to the building's condominium association.

Co-op Purchase: In contrast to condos, co-ops are not considered real property. When you buy into a co-op, you become a shareholder in a corporation that owns the property. As a shareholder, you are entitled to exclusive use of a housing unit in the property. Buying a co-op is tricky, but Luxury Apartments LIC team of qualified agents can help. When purchasing a co-operative apartment, the purchaser is really buying shares in a cooperation. The shares correspond to the unit in which you live. Co-op fees include a monthly mortgage payment and maintenance fees for the building. Maintenance fees are sometimes high but both mortgage payments and maintenance fees generally result in higher tax deductibles.

Cond-op Purchase: While condos and co-ops make up the vast majority of New York City’s multi-family market, it’s possible you encounter something a little different during your home search: a cond-op. A cond-op is a co-op that was formed inside of a condo building. At the bottom of the building is often a single condo unit that houses commercial and retail space, which is run under condo rules. Above, all the residential space is one giant condo unit in which a co-op is formed so that the apartments can be divided via shares among owners. The residents operate primarily under co-op rules, but the co-op must abide by the condo rules and hence both rules are in effect. For the most part, cond-ops function more like co-ops when it comes to the application and approval process. Cond-op owners own shares in the building — just like co-op owners — and also pay maintenance fees that include taxes. According to the NYC Buildings Department, as of early 2014, cond-ops comprised less than 5 percent of the city’s common-interest real estate entities.