Sellers / Purchasers - Condo

Ownership of condominiums has become one of the most popular forms of real estate ownerships. With thousands of new units on sale in the New York City area, the market for such units remains stable.

Knowing the difference between coops and condos is very important for first time purchasers. A Purchaser of a condo unit shares the hallways, stairs, lobby, elevators, and other common areas in a building much like the purchaser of a co-operative apartment, the similarities end there, as a purchaser of a condominium does own a title to real property .

Rather than purchasing shares of stock in a corporation, a purchaser of a condo unit gets a deed to the specific apartment being purchased. Each owner is responsible for real estate taxes and mortgage payments, and pays monthly “common charges” to the condominium, representing maintenance of the common areas of the building. Condominium buildings unlike coops do not have an underlying mortgage.

While most condos do require an application to be submitted to the condominium's Board of Managers, the application process is simple and less formal. Much less financial and personal information is required. It is almost impossible to be rejected by most condo boards.

The Board of Managers has the first right of refusal to purchase or lease any condominium being offered for sale or lease, but it almost never exercises such a right. If the Board of Managers wishes to exercise its first right of refusal, it must purchase the apartment unit for the same price and under the same terms and conditions upon which the purchaser being rejected agrees to purchase the unit.

The purchaser receives a deed which is recorded in the office of the county clerk where the property is situated. Owners are responsible for their own real estate taxes.

Maintenance is usually lower for condos and management expenses are closer controlled by the Board of Directors.

Closing cost for condos are typically higher as oppose to coops, since purchasers obtaining financing are responsible to pay mortgage tax.