Buyers & Sellers
Co-op vs. condo: what’s different
Most apartments for sale in New York City are either co-ops or condos. They can look the same from the inside, but what you own, how you buy and the rules you live with are very different. Buyers ask Mena Realty about this more than almost anything else, so here is how the two compare.
The short version
- Co-op: you buy shares in a corporation that owns the building, plus a lease to live in your apartment. The co-op board must approve you.
- Condo: you buy and own your apartment itself, with a deed, plus a share of the common areas. There is usually no board interview.
Side by side
| Co-op | Condo | |
|---|---|---|
| What you own | Shares in the building’s corporation and a proprietary lease | Your apartment (real property), with a deed |
| Board approval | Required: application package and interview | Usually only a right of first refusal, which the board almost always waives |
| Down payment | Often 20% or more; some buildings require more | Can be lower, depending on your loan |
| Savings after closing | Many boards require proof of savings left over | Usually set only by your lender |
| Monthly charges | Maintenance, which includes the building’s property taxes and mortgage | Common charges, plus your own property tax bill |
| Closing costs | Lower: no mortgage recording tax or title insurance | Higher: mortgage recording tax and title insurance |
| Renting it out | Often limited or not allowed | Usually more flexible |
| Price | Often lower for a similar apartment | Often higher for a similar apartment |
Buying a co-op
- Expect a board package: tax returns, bank statements, reference letters, an employment letter and a financial statement.
- The board reviews your finances and usually meets you for an interview. It can turn down a buyer, but it may not discriminate based on race, religion, source of income or any other protected class under fair housing laws.
- Your loan is a co-op share loan from a lender that the building accepts. The lender signs a recognition agreement with the co-op.
- Some co-ops charge a flip tax when an apartment is sold, usually paid by the seller.
- Part of your maintenance may be tax-deductible, because it covers the building’s property taxes and mortgage interest. Ask your tax preparer.
Buying a condo
- You get a deed and a title insurance policy, like buying a house.
- The building has a right of first refusal: it can buy the apartment at your price instead of you. In practice, boards almost always waive it.
- You pay your own property taxes. Some newer buildings have tax abatements that end after a set number of years, so ask when yours ends.
- Rules on renting out the apartment are usually looser, but check the building’s bylaws.
Which one fits you?
- A co-op may fit if you want a lower price, plan to live in the home for years and have savings for a larger down payment.
- A condo may fit if you want a smaller down payment, may rent the apartment out later or want a simpler approval process.
- Compare the full monthly cost of each with our mortgage payment calculator, and the cash you need at closing with the closing cost calculator.
How Mena Realty helps
Mena Realty Homes Corp. is a licensed real estate brokerage in the Bronx, helping buyers and sellers across New York City since 2001. Our team speaks English and Spanish.
- We help you decide whether a co-op, a condo or a house fits your budget and plans.
- We get each building’s rules, monthly charges and down payment requirements before you make an offer.
- For co-ops, we help you put together a complete board package and prepare for the interview.
Ready to talk about buying?
Send us a quick message and a Mena Realty agent will contact you.
Common questions
Can a co-op board reject me without a reason?
In New York City, co-op boards generally do not have to explain a rejection. They still may not discriminate against buyers because of a protected class, including lawful source of income, under the NYC Human Rights Law.
How long does board approval take?
It depends on the building. Once your complete package is in, many boards decide within a few weeks. A complete, organized package helps avoid delays.
Can I use HomeFirst or SONYMA for a co-op or condo?
Yes, both programs can be used for co-ops and condos that meet their requirements. See our first-time buyer checklist.
Buyers & Sellers: (347) 766-6362 · Mon–Fri 10–5