{"id":369443,"date":"2016-04-04T10:47:27","date_gmt":"2016-04-04T15:47:27","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/owning-a-home\/what-are-co-ops.html"},"modified":"2023-12-12T17:02:52","modified_gmt":"2023-12-12T22:02:52","slug":"what-are-co-ops","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/what-are-co-ops.html","title":{"rendered":"What Are Co-Ops?"},"content":{"rendered":"\n
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What Are Co-Ops?<\/h1>\n
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\n By Robert Rafii, Esq.<\/a> | Legally reviewed by Aisha Success, Esq.<\/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

\n \n <\/i>\n Fact-Checked\n <\/summary>\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

A cooperative, commonly known as a co-op, is much more like living in an apartment or a condo than a single-family home. Many co-op buildings started as rental buildings but were later converted. Co-ops are more restrictive than condominiums and townhouses. But they also offer residents a greater say in decision-making and several aspects of property management.<\/p>\r\n

Co-op apartments are a popular housing option for New York City (NYC) home buyers. Like all homeownership, co-op ownership has financial obligations like real estate taxes. Buying into a co-op or another type of property purchase is a major investment.<\/p>\r\n

Ownership ‘Shares’ in a Co-op<\/h2>\r\n

Unlike a condo owner, an owner of a co-op does not own their unit. A non-profit corporation<\/a> with a corporate board of directors owns co-op housing. The board functions like a condo association or HOA<\/a> in other forms of multi-occupancy real property. Each resident is a "shareholder" in the corporation.<\/p>\r\n

Co-op buyers<\/a> do not sign a deed. Instead, they buy shares of the corporation, including a lease granting the use of a specific unit. The size of the unit can decide the number of shares owned. They correspond to each tenant’s share of the property. In all types of co-ops, shareholders get voting rights on issues affecting the property, including:<\/p>\r\n