COOP vs. CONDO
What is the difference between a Cooperative apartment and a Condominium apartment? From the outside there seems to be very little difference. Usually both are multiple dwelling buildings with many of the same amenities. But when you take a closer look there are significant differences. The following should help you understand the fundamental differences between a COOP and a Condominium.
A COOP is considered Personal Property. The real estate (the building) is owned by the COOP corporation. As a COOP unit owner, you receive stock in the COOP corporation and a proprietary lease. In other words, you are a stockholder of the corporation that owns the building and you have a lease which gives you the rights to the unit. In a COOP you do not pay real estate taxes. You pay your proportionate share of the COOP corporation's expenses in the form of maintenance.
A Condominium unit is considered Real Property, similar in ownership to that of a single family house. As a Condominium owner, you actually take title to the real estate by filing a deed. Real Estate taxes are assessed to each unit. In addition, you also pay common charges in connection with expenses for the area common to all unit owners (example: lobby, halls, laundry room, etc.). The amount you pay for common charges is determined by the percent of common elements your unit has.
COOP CONDO
Security Agreement Mortgage
No Real Estate Taxes* Real Estate Taxes
Maintenance Fees Common Charges
*Note: Real estate taxes are included in your maintenance fees
Source: Continental Mortage Company (http://www.continentalmtge.com/coop.asp)
For more detailed information refer to "A PRACTICAL GUIDE TO BUYING A COOPERATIVE OR CONDOMINIUM UNIT" at http://www.fnyhc.org/legal-2buy-a-condo.html