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
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
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.