What is the difference between a condo and a cooperative?

When it comes to real estate law in Arkansas, there are key differences between condos and cooperatives. A condo (short for condominium) is a type of residential property that is owned by the individual but shared with other unit owners. In condos, each unit owner has exclusive ownership rights for their assigned unit, but they also share responsibility and ownership of common areas in the building such as hallways, lobbies, and amenities like pools and fitness centers. On the other hand, a cooperative (or co-op) is a type of residential property that is owned by a corporation. In a co-op, each unit owner purchases a share of the corporation, granting them the right to occupy a specific apartment unit as long as they are a shareholder. In addition to renting the unit, the shareholders are also responsible for the payment of regular fees to the corporation for the maintenance of the common areas. Thus, the difference between a condo and a cooperative is that with a condo, the owners have exclusive ownership rights to their individual units but still share responsibility for the common areas, while in a co-op, the owners purchase shares of the corporation and are responsible for additional fees for the maintenance of the common areas.

Related FAQs

What is the difference between a lease and a rental agreement?
What is a purchase agreement?
What are the legal requirements for subdividing land?
What are the duties of a real estate broker?
What is the difference between a real estate attorney and a real estate agent?
What is a servitude?
How do I obtain a real estate license?
How can I protect my rights as a landlord?
What is a broker-in-charge?
What is a deed in lieu of foreclosure?

What is the difference between a condo and a cooperative?

Related FAQs

Related Blog Posts