Cooperative
The main difference between condominiums and cooperatives lies in the specifics of ownership: if you
own a co-op, you do not own the unit itself. Instead, you own a share in the cooperative
corporation. This share gives you sole right to your living space, but it does not give you
ownership of it. For this reason, your real estate taxes may be covered by your co-op membership,
because the building is taxed as a whole. Co-op members pay a monthly fee to the corporation, which,
like the condo association, maintains the building and all shared spaces and handles daily
management tasks. A co-op is generally stricter about screening prospective buyers and has more say
in the handling of your own unit. Also, a co-op may be more difficult to finance than a condominium,
because co-op corporations may only deal with certain banks.