{"id":369372,"date":"2016-04-04T10:47:24","date_gmt":"2016-04-04T15:47:24","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/owning-a-home\/advantages-of-condos-and-co-ops.html"},"modified":"2025-07-22T10:14:25","modified_gmt":"2025-07-22T15:14:25","slug":"advantages-of-condos-and-co-ops","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/advantages-of-condos-and-co-ops.html","title":{"rendered":"Advantages of Condos and Co-Ops"},"content":{"rendered":"\n
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Advantages of Condos and Co-Ops<\/h1>\n
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\n By Melissa McCall, J.D.<\/a> | Legally reviewed by Jordan Walker, J.D.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Housing co-operatives (co-ops) and condominiums (condos) are alternative paths to traditional homeownership, but they have differences between them. Co-ops involve buying shares in a corporation that owns the building, typically offering lower purchase prices but potentially more stringent approval processes and financing challenges. Condos allow homebuyers to own their units as real property, providing greater flexibility in refinancing and selling, but usually at a higher cost. Renters who wish to build equity in their homes but do not want the responsibilities of upkeep may choose condominium or co-op ownership because it provides many of the same maintenance services as a rental unit.<\/i><\/blockquote>\r\n

This condo vs. co-op article discusses shared responsibilities for maintenance and community management in both housing options. Our goal is to help you understand which option might better suit your lifestyle and financial goals.<\/p>\r\n

Understanding Housing Co-operatives and Condominiums<\/h2>\r\n

Housing co-operatives and condominiums are two distinctive types of homeownership, with equally distinctive rules of ownership. Condos and co-ops have a few things in common. First and foremost, they are typically cheaper to buy than a traditional house. Second, they require less maintenance than a house. You won’t have to mow a lawn or shovel snow. Finally, you will likely have other owners sharing walls, ceilings, and floors with you.<\/p>\r\n

Differences in Ownership<\/h2>\r\n

Housing Co-operatives<\/h3>\r\n

Housing co-operatives function like a corporation. Instead of owning your property, you buy shares in the co-op. By contrast, condos are real property, so condo owners own their residences. <\/p>\r\n

Cost is one of the most attractive features of a housing co-operative. Housing co-ops are usually less expensive per square foot than physical homes or condos. Many housing co-operatives require a down payment. In exchange, they offer proprietary leases that continue until you sell your shares. Since you do not own your unit outright, you may experience difficulty obtaining a mortgage loan. Consider this factor when choosing between these types of housing.<\/p>\r\n

Condominiums<\/h3>\r\n

Condominiums are usually more expensive than housing co-operatives. You own your unit when you purchase a condominium. It is real property and can be your primary residence or an investment property. You can sell or refinance your unit. <\/p>\r\n

In many ways buying a condominium is similar to buying a house<\/a>. You can likely sublet your unit, subject to the condo association’s occupancy rules.<\/p>\r\n

If you cannot afford to pay for your unit upfront, you can seek a mortgage loan<\/a> and go through the loan approval process. Since your purchase is a real estate transaction similar to buying a physical home, you will likely incur the following costs:<\/p>\r\n