Condo vs Co-Op
In places like New York City ~75% of the Manhattan housing inventory is comprised of co-ops. While co-ops are much less common in Florida a prudent buyer or seller should understand the differences and evaluate real estate decisions with a valid understanding how this could impact the real estate experience.
| Condo | Co-Op |
| Owns property | Own shares in a corporation that owns the property
OR
Obtains stock + a proprietary lease
OR
Obtains an occupancy agreement |
| More freedom | More teamwork |
| More private | More communal |
| No board approval to buy | Require approval by the co-op board to buy based on
- ability to pay
- willingness to live the terms of the association |
| Owner pays property tax | Share-holder impact
- real estate taxes are paid through the Co-op
- transfer taxes are not paid by the share-holder
- title insurance is often not available and thus not charged
****purchases and lenders should be as prudent as the title |
| insurer | - no recording tax
- maintenance fees are sometimes tax deductible |
Monthly maintenance fees for
- building upkeep
- insurance | Monthly maintenance fees for
- building upkeep
- insurance
- real estate taxes
- mortgage debt of the building |
Typical similarities fo Condos and Co-Ops.
+ Equal “say” in how the building is run and maintained.
+ Residents vote on decisions that affect the building.
+ Some resident are elected as board members to cart out the group’s wishes and handle other details.
+ Financing can be limited, not approved by the lender, or not approved by the board.
This article was written by Brian C. Smith- Realtor, EWM Realty International.
For more information or assistance with real estate in South Florida please contact Brian today at 305.318.8200.
#MiamiRealEstate #Co-Ops #SouthBeach
