Co-ops vs. condos: what’s the difference?

So, you want to buy your first piece of property and don’t know where to start? When it comes to shopping for real estate, there are so many different avenues to go down that it can be overwhelming at times, especially for firsttime buyers. If you’d like to stop renting but don’t want all the responsibilities and costs associated with buying a detached single-family house, consider looking into condos and housing cooperatives. Here are some differences between these two types of real estate.

CONDOMINIUMS

The idea behind condos is fairly straightforward: residents own their individual units and share the costs of common amenities. They have similar rights and responsibilities as conventional homeowners. Condo fees are typically required from all residents of the building to pay for maintenance (landscaping, snow clearance) and shared facilities (pools, gyms). Condo associations can have more or less extensive rules governing the specific use of each unit. These rules are generally voted in by a majority of residents.

COOPERATIVES

Housing cooperatives can be organized in different ways, but the general idea remains the same: the building is owned by, and managed as, a corporation. In order to be granted the privilege of living in one of the units, you have to purchase a share of the corporation. You’re not actually buying any real property; your share simply allows you to live in one of the units. Co-op boards can be extremely rigorous in how they vet their potential tenants. It isn’t rare for applicants to be subjected to several rounds of interviews before a decision is made.