What's the difference?

For some people, a Condominium or Co-op may be a better housing choice than the traditional  home. There's lot less time consuming home maintenance involved. While condo and co-op are both part of a multi-family setting, single building, or community, there are some significant differences.

  • Condo: title, same as a single family house
  • Co-op: own shares of stock in a not-for-profit corporation.

Property Taxes
  • Condo: unit owners taxed separately
  • Co-op: the entire property is owned by the corporation, so it appears on the tax rolls as a single piece of property. The corporation pays the property taxes and pass along the cost to the shareholders, usually as part of the monthly maintenance fee.
Tax Deductions
  • Condo: same as a single family house
  • Co-op: deduct interest paid on their apartment loans and on their portion of municipal taxes and mortgage interest paid by the corporation.
  • Condo: same as a single family house, but the lender will require condo questionnaire
  • Co-op: loans are written almost like mortgages. and usually the corporation requires minimum down payment (25% - 30%)
Monthly Fees
  • Condo: includes common area maintenance, amenities, frequently water bill and cable services
  • Co-op: includes common area maintenance, property taxes and frequently all utilities

Home Owner Association and Power of the Board
  • Condo: most of condos have HOA and Rules & Regulations, but small complex may not have the HOA, so there may be no monthly dues.
  • Co-op: the board which is elected from among the residents, runs the co-op, has a power either to approve or disapprove the sale. Typically the board requires a minimum down payment (25% - 30%), and income to debt ratio (i.e..... 4 to 1).
  • Condo: same as a residential house
  • Co-op: sold stock shares to a buyer, most co-op charge the seller a transfer fee(usually calculated by a dollar amount per share, i.e..... $1.50 per share at closing).