What is the difference between a condo and a cooperative?

The difference between a condo and a cooperative when it comes to real estate law in California is subtle but important. Condominiums, or “condos”, are when multiple owners purchase individual units in the same building or complex. In California, condominium owners have exclusive ownership of the interior of their individual units, but they must jointly manage the common elements of the complex, such as the exterior of the building and the grounds around it. Cooperatives, or “co-ops”, are a similar type of real estate ownership. However, instead of owning individual units, co-op owners purchase shares of the cooperative; they don’t actually own the real estate itself, but they enjoy the right to live in one of the cooperative’s units. Furthermore, in California, the board of directors of a cooperative is the sole authority responsible for managing the common elements of the complex. The main difference between condominiums and cooperatives is in the type of ownership that each offers. With a condo, owners have direct control of the individual unit they purchase, while co-op owners only own a share of the cooperative and rely on the board of directors for decisions about the common elements. In either case, owners of either type will be subject to the same real estate laws in California.

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What is the difference between a condo and a cooperative?

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