Condo vs Co-op vs Condop: What’s the Difference?
The New York City housing market is primarily made up of condos and co-ops. However, there is also a third property type called a condop. All types of properties are unique when it comes to New York City homeownership.
What is a Condo? – Buying a Condo in NYC
A condo is a unit within a condominium complex. When you purchase a condo, you are purchasing the unit along with the shared complex amenities. Even though you may own the unit, you are still subject to the terms, rules and regulations set forth by the condo board. The condo board hires a team to manage the monthly maintenance and shared amenities. In turn, each condo owner pays HOA fees to cover the monthly maintenance.
To purchase a condo unit, you must be approved by the condo board (this is typically much less strenuous than the co-op board approval process).
What is a Co-op? – Buying a Co-op in NYC
When you buy a co-op, you do not own the unit. Instead, you will own a share of the co-op cooperation that owns the building. The larger the unit, the more shares you own. Co-op buildings are extremely common in New York City. Co-ops are similar to condos in that you pay monthly maintenance fees. The fees typically cover utilities, insurance and staff salaries. Co-ops generally cost less than condo apartments but usually have a more rigorous board approval process.
What is a Condop? – Buying a Condop in NYC
A condop is when a co-op forms within a condo building. This is often referred to as a mixed-use building. The first few floors of the building are typically condo units which house commercial and retail space. Floors above the commercial and retail space are typically residential units managed by a co-op board. Most condops follow co-op rules, but the co-op must also abide by the condo rules. Therefore, rules and guidelines for both the condo and co-op remain in effect.