What is the difference between coop and condo?[/QUOTE
Coops are Shares in a corporation that owns the building. Proprietary Lease establishes occupancy terms. No recording of a deed or central recording of sale information.A Group of residents, mostly owners, that have the right to accept or reject applicant owners or tenants. Not appealable. Maintenance - Monthly payment that consists of building upkeep, real estate taxes and payment of the underlying coop loan, generally from when the building was converted to a coop from a rental building. In most cases 40% to 60% of the maintenance is tax deductible. Real Estate Taxes - Included in Maintenance. Some buildings have abatements that do run out and thus increase taxes later on.Prospectus / Black Book / Offering Plan and Amendments - Outline the terms of the original coop offering and amendments update along with rules of the buildingFinancials - Prepared Yearly by outside accountant to determine financial status and profitability of the coop.
Management Company - Outside company that collects maintenance, operates the building, maintains records. Smaller building may be "self managed by the occupants / owners.Financing - Certain coops have financing restrictions (down payment minimums, income minimums, etc.).
Sublet / Renting - Generally require board approval. Certain boards do not allow subletting or place limit on the sublet (2 year maximum, 1 year minimum, etc.) Sale - Certain coops have a transfer fee / flip tax that each coop seller must pay back to the coop upon sale of the unit
CONDO: Condominiums
orm of Ownership - Deed that is recorded at the county clerk's. Transferable as any other house or property.
Board Approval - 99% of the time not required.
Common Charges - Monthly payment that consists solely of building upkeep.
Real Estate Taxes - Each individual owner pays their own on each unit.
Prospectus / Black Book / Offering Plan and Amendments - Outline the terms of the original offering and amendments update along with rules of the building.
Financials - Prepared Yearly by outside accountant to determine financial status and profitability of the condo association.
Management Company - Outside company that collects maintenance, operates the building, maintains records. Smaller building may be "self managed by the occupants / owners.
Condo Attorney - Generally non existent.
Financing - Only restrictions are lender required.
Sublet / Renting - Generally no restrictions.
Sale - No restrictions. Generally no costs.
Coops are generally less expensive than condos due to the tax abatements on the land by the City. Also, some coops have commercial storefronts that help with lowering the monthly maintenance for the owners.