HICKSVILLE, N.Y., Nov. 21, 2019 /PRNewswire/ -- Real estate lawyer Long Island NY, Markotsis & Lieberman P.C., explains differences between purchasing a condo and a co-op.
Before purchasing a home of any kind, it's important to know exactly what you are buying. Condominiums (commonly known as condos) and cooperatives (commonly known as co-ops) are two common types of homes that first-time buyers typically consider. Although they are similar, there are a few key differences that might make one a better choice over the other for a certain buyer. Here are the main differences:
Ownership. The main difference is in what you own. For a co-op, you own shares in the co-operative corporation, which is the entity that actually owns the property. The amount of shares you are purchasing depends on the unit you are purchasing. For a condominium, you actually own unit or the house, but you also own a percentage of the common areas in the development.
Cost. There are different cost advantages and disadvantages for condos and co-ops. For example, co-ops tend to be less expensive per square foot and have lower closing costs. Condos, on the other hand, are often easier to finance and tend to have lower fees.
Rules & Regulations. There are some caveats to purchasing both co-ops and condos. Co-ops require purchasers to be approved by the co-op board. This is good for the quality of the neighborhood but can slow down the process if you are looking to sell your co-op in the future. Condo units have begun to adopt rules and restrictions regarding resales and leasing structures.
The ability to rent it out. Co-ops usually have restrictions about secondary rentals, meaning residents are typically more personally invested in their property. This fosters a much stronger sense of community than if the properties were continually rented out to different people. Condos, however, are much more easily rented out. This does not mean that one is better than the other per se, it just depends on what you are looking to do with the property.
Condos and co-ops are both generally cheaper than buying a house and do not require the lawn and property maintenance of houses. If you are looking to live within proximity to other people and are willing to pay additional monthly fees, then either one may be a good option for you. But these key differences may show that one option is better for you than the other.
About Markotsis & Lieberman
Markotsis & Lieberman, P.C. is a general practice law firm. Practice areas include real estate, litigation (commercial and civil), business formations, agreements and transactions, and wills, trusts and estates. Our team of seasoned attorneys are here to guide you through every step of the legal process providing personalized attention to every client. When you're facing a complicated legal situation, our team of legal experts is there to fight for your rights.
SOURCE Markotsis & Lieberman, P.C.