CONDOMINIUM VS. COOPERATIVE

Did you ever wonder about the difference between a condominium and a cooperative? In a condominium, you get actual title to the space within your unit plus an undividedinterest (along with other owners) to the

structure, grounds and common elements (pool, parking area, hallways, recreational area, etc.)
In a cooperative, the “co-op” corporation owns everything within the complex including your unit and you get stock in the corporation plus a lease to your unit. In effect, coops do not enjoy the same mortgage treatment by banks as you get when you own and have title to your condominium or home.

Another difference between having title to your home or apartment, and owning stock in a co-op, is that your mortgage interest, taxes and maintenance charges are completely independent from other unit owners and you have no responsibility for your neighbor’s mortgage, taxes or charges if he should default. However, due to large price differences
between condos & co-ops, co-ops that are well managed can be less costly to purchase & a great investment too!!!