Cooperatives and Condominiums, Coop or Condo, they go by several names, is a legal form of property ownership with big differences between them. Here's an informative article from Realty Times that you can fnd
here. Abstracts follow.
The general public often confuses condominiums with cooperatives. In reality, as far as living standards go, there are few differences. However, from a legal - and financing - point of view, there are major differences.
There are many definitions of cooperatives, but the one I like best is that a cooperative is a multi-unit apartment building, in which each resident has an interest in the entire building, and a lease (or contract or share of stock) enabling the owner to occupy a particular apartment unit within the building.
If you own a condominium, you actually own your entire apartment, as well as a percentage of the common areas (called the "common elements"). A cooperative owner -often called a shareholder -- does not own the unit. In fact, you could call such owner a "tenant".
Perhaps the most important distinction between a condominium and a cooperative is that most cooperative associations require that a prospective purchaser be approved by a membership committee comprised of current cooperative owners.
Remember that each state has different regulatory laws for coops and condos. Before purchasing either, we recommend that you consult an attorney with real estate experience.
For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. We are the title insurance agent that does it all for you.
For your next title order or
if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Vested Land Services LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
Tel 973-808-6130 - Fax 973-227-0645
E-mail sflatow AT vested.com
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