Although condominiums and co-ops (Cooperative Housing Corporations) both are Common Interest Communities, there are important differences.
- The purchase of a condominium unit is the purchase of an ownership interest in a specific housing unit that is part of the condominium complex. In addition to the specific unit, the purchaser also owns an undivided interest in the common areas, such as parking lots, hallways, gardens, swimming pools, and/or a clubhouse. Purchasing a condominium is similar to purchasing a single family home in that you receive a Deed (recorded on the Land Records) as evidence your ownership interest.
- In contrast, the purchase of a co-op is the purchase of stock in a Cooperative Housing Corporation. The Corporation owns the real property and you own a part of the Corporation. Although your shares of stock in the Corporation entitle you to exclusive possession of a specific unit, you, individually, do not own any of the real property. Your ownership interest is evidenced by shares of stock in the Corporation (personal property) and not by a Deed to a specific unit (real property).
If you are purchasing a condominium or co-op it is important to review all applicable documents before obligating yourself to proceed with the transaction. We can help you make an informed decision by explaining your rights and responsibilities.