Condominium and co-op home ownership may seem similar at first, but there are important differences between them.
As with any legal description, your regional legislation and municipal bylaws dictate the actual definitions of these terms for your area. Nonetheless, it’s fair to generalize that in the case of a condo, each member owns his or her specific unit as a piece of personal property, but is also a coowner of a corporation that owns the building and grounds.
Meanwhile, co-op members essentially hold shares in acorporation that owns the entire property, and units in the building are leased back to members as tenants/residents.
Both arrangements usually include fees to maintain theoverall infrastructure, but the real difference relates tosales. The sale of a co-op entails selling the membership back to the group, which then determines what happens to the unit. That’s why it’s important to understand co-op rules regarding selling (or sub-leasing) the unit you live in.
Ultimately, the co-op decides how to replace members and what arrangements are required prior to moving in or out at the agreed time and price.
*Morris Marketing*