What is the difference between a condo and a cooperative?

A condo and a cooperative are two types of real estate ownership in Florida. The primary difference between the two is who owns the common spaces. In a condo, the individual units are individually owned while the common areas like the hallways, stairs, lobbies, and other shared spaces are owned by all of the condo unit owners through their association. In a cooperative, the building and common areas are still owned by the association, but instead of owning their own unit, each of the cooperative owners own a share of the corporation that owns the entire building. Another key difference between a condo and a cooperative is the way the financing works. With a condo, buyers use a mortgage loan to purchase their unit and become part of the condo association. Whereas with a cooperative, buyers must purchase shares of the corporation, usually using financing from a bank that specializes in cooperative financing. When it comes to renting out a unit, condos also offer more flexibility as they can be easily rented out on a short or long-term basis. Whereas with a cooperative, the association or board has to approve all rental agreements and will often require long-term leases. Overall, both condos and cooperatives can be excellent and secure forms of real estate ownership in Florida. However, depending on your individual needs, one may be more suited than the other.

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What is the difference between a condo and a cooperative?

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