What is the difference between a condo and a cooperative?

A condominium, or condo, and a cooperative are both forms of ownership in which multiple owners occupy the same piece of real estate. However, there are key differences between the two. The main difference between a condo and a cooperative is that in a condo, the owners hold individual ownership of their unit and the common areas are jointly owned by all owners in the condominium. In a cooperative, the entire real estate is owned by a single entity, which is typically a corporation or other type of organization, and each tenant holds shares in the corporation which provides them with the right to occupy their unit. Another distinction between a condo and a cooperative is how the property taxes are paid. In a condo, each owner pays their own taxes on their individual unit. In a cooperative, the entire cost of property taxes is included in the rent/fees paid by each tenant. A third difference is how the purchase is structured. When buying a condo, the purchaser holds a deed to their specific unit and therefore has title to the unit. When purchasing a cooperative, the buyer does not receive a deed to the unit. Instead, they receive a proprietary lease, which outlines the tenant’s rights to occupy the unit. In conclusion, the key differences between a condo and a cooperative lie in the way ownership is structured, how property taxes are paid, and how the purchase or sale of the unit is handled.

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