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What are key differences between Co-op and Condo/ House?
I am planning to purchase a house in NY,NY. I wanted to understand key (legal or other) differences between buying a Co-op and buying a Condo/ house from a buyers' perspective. Are there any consequences when I sell the co-op or condo? Do Co-ops have difficult rules regarding approval of transfers (at the time of sale), occupancies, etc.?
As a fellow New Yorker here is the scoop on co-ops vs. condos. When you purchase a co-op you are buying shares of a company. Basically you are buying a lease that runs forever. In most cases you will have to pass the board approval. The board regulates the down payment, flip tax, if you can sublet etc. Usually they are more strict than condo boards. Maintenance is usually higher than condo's because the company is paying real estate taxes. In condo's you are purchasing real property. They might or might not have boards however they are more lenient however, they can regulate if subletting is allowed, pets etc. Maintenance is cheaper because you are responsible for real estate taxes. Co-ops generally are more strict and will look into you past few years of tax returns, ask for bank statements and will require a certain % of downpayment that is non negotiable.
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