Difference between Cooperatives and Condominiums

          Shopping for real property? You are now hesitating between two options: a condominium and a cooperative property. But do you really know the differences between these two community property structures. This might dramatically help to make your choice.
As for a condominium arrangement, you legally own a particular unit in a multiple unit structure of building. In addition to this, under a typical arrangement, you have a share and a right to use common property such as hallways, elevators, gardens, swimming pools, club house, and so forth within that structure. But normally you will have to pay off monthly to an "association" for expenses incurred in maintaining the common property. The association gains its legal authority from the legal documents which create it such as declarations, by-laws, and articles. Besides these associations are typically run like a corporation and may be managed by professional property management companies. In case of complaint, there are usually in-built complaint and appeal processes into the association documents in order to protect individual rights and to provide a mechanism for resolving controversies within the community. This are also documents applicable for the process for the selection of the members of the Board of Directors who oversee management of the association.

          As for a co-operative, it is totally different in many aspects. First you don’t own your own specific unit in the building but you only own stock in the corporation that actually owns the building and all the apartments. Thus you lease your apartment or unit from the corporation. The unit’s size determines the number of shares of stock you must purchase. Monthly fees based on the number of your shares of stock are assessed for the mortgage payment, taxes, and general operating expenses. As a shareholder, you can participate in the election of the Board of Directors who manage and decide on how the cooperative is to be run, who is qualified to buy shares, and all other aspects of the day-to-day operations.