What is the difference between Condo and COOP?

A condo or condominium is similar to an apartment; however, it is saleable and considered real estate. It presents within an apartment building with about six units on the average, and an individual person owns each.

The owner is responsible for the upkeep of the interior of the unit. Still, the outside lawns, roads, and snow removal are provided by the homeowner’s association for which you pay on a monthly basis in addition to your mortgage payment. A board of directors runs a COOP or a cooperative instead of a homeowner’s association. It is owned by a group of people who have equal shares, so instead of holding your own unit, you own shares in the whole complex.

At times, condos and coops are usually considered to be the same simply because the owners of the two are usually required to contribute to certain building expenses. However, there are some differences between the two. A coop is a type of corporation that allows people to own a particular apartment for a period of time. Those who want an apartment using this method will need to buy shares from the cooperation. However, the size of the apartment will also reflect in the number of shares that will be bought by a shareholder.

Aside from this, a shareholder will also pay for the maintenance charges and other building expenses. On the other hand, the provision of condos makes it look like someone owns real property instead of buying shares before an apartment can be given. However, condos owners are expected to pay a certain amount to the Condo board on a monthly basis. Condos are most times preferred to coops since they are easier to finance compared to coops. With condos, you can also sublet your apartments to other people but with little restrictions.