Co-op vs. Condo: What’s the Difference?

Cooperatives (Co-ops)

Co-ops represent approximately 70% of Manhattan’s available housing inventory. When purchasing a co-op, you’re not buying real property but rather shares in a corporation that owns the building. These shares entitle you to a proprietary lease for your specific unit.

Key Co-op Characteristics:

• Typically lower purchase price than comparable condos
• Higher monthly maintenance fees that include property taxes and building mortgage portions
• Rigorous board approval process with extensive financial disclosure
• Stricter rules regarding financing, subletting, and renovations
• Usually require significant down payments (often 20-25%, sometimes up to 50%)
• Transfer taxes and flip taxes may apply upon sale

Condominiums (Condos)

Condos offer a more straightforward ownership structure where you purchase the actual apartment and receive a deed to real property.

Key Condo Characteristics:

• Direct ownership of your unit and a percentage of common areas
• Generally higher purchase prices but lower monthly common charges
• Property taxes paid separately to the city
• More flexibility with financing (often allow 10% down payments)
• Less restrictive rules on subletting and renovations
• Simpler approval process (no board interview)
• More investor-friendly