Feb 7, 2014

Posted by Shanell Calloway in Real Estate | Comments Off on Understanding the Difference Between Co-op and Condo in NYC

Understanding the Difference Between Co-op and Condo in NYC

New York City has a large population, and for that reason, many people live in apartments or condos. If you’ve never purchased or rented a place in Manhattan, you may not be familiar with the two main types of real estate available. Chelsea real estate in NYC is available as either a co-op or a condo. While the living spaces may look similar, the rules and fees can be strikingly different. Older buildings are typically based on the co-op structure, while newer buildings are condos. There is no right or wrong way to purchase Chelsea real estate in NYC, but you do want to understand the differences between the two before you invest.

Understanding a Co-op Structure

With a co-op, which is short for cooperative, you do not technically own the apartment. Instead, the building is owned by a corporation and the apartments are considered shares of the building. When you purchase a co-op, you are essentially purchasing a share of that building. An elected board works with a property management company to oversee the tenants living in the building.

The board and the property management team convene and decide on the rules of the building. This can mean no pets, how many visitors are allowed at one time, whether you can use a cell phone within the building when outside of your apartment, and any other aspect of running the building and its’ people that the board can think up. You pay fees for maintenance and taxes through the co-op, and the larger share you own, or the larger your apartment, the more you will need to pay. You will need approval to purchase a share in a co-op, so expect an application process once you choose a location.

Understanding a Condo Structure

If purchasing Chelsea real estate in NYC, you will get a deed to a condo and actually own your residence. Like a co-op, you will need approval but a condo association has fewer rights to deny a purchase than a co-op board. There is an elected board, but it’s not quite as far reaching as a co-op board. For example, a co-op board can evict for various reasons but a condo board cannot. You will pay common usage fees in a condo building, but you will be responsible for your own taxes. Some people prefer condos because of the ownership option and the less stringent rules, but sometimes affordability is the only┬ácontributing factor when looking at Chelsea real estate in NYC.

To learn more about buying Chelsea real estate in NYC.

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