What is a Cond-op?

Question

i was watching hsbc channel and they were talking about properties for sale. I am assuming it is a co-op/condo, but how does that work?

Answer 1

There are some interesting differences...

Co-ops: This is one of the most important words for buyers interested in the NYC market, as this is the type of housing that dominates in the city. Understanding what a co-op is will help you determine whether this is the best search option for you. The co-op buyer does not buy his or her apartment, per se, but rather owns shares in the corporation that owns the apartment building. The corporation pays the building’s mortgage and other expenses, including taxes and doormen’s and maintenance staff salaries. Typically, the owner, who has a long-term proprietary lease for his or her apartment, will pay a monthly “maintenance fee,” which is calculated based on the number of shares owned; these, in turn, are determined by factors such as the size of one’s apartment and the floor (higher vs. lower). The buying process is straightforward but quite distinct from buying other kinds of real estate. Each co-op has a board that is responsible for reviewing and either approving or declining a prospective buyer’s application. This board is also responsible for making general decisions for the building shareholders—such as subleasing rules—and the smart prospective buyer will ask about the co-op rules up front, as well as the financial specifications for each property. The down payment required typically runs as high as 50% in the Manhattan co-op market, so buyers should keep this important fact in mind when deciding whether a co-op is right for them.

Condominiums (Condos): The process for buying a condo is somewhat similar to purchasing a co-op, but understanding the differences is key. Unlike the co-op, the buyer of a condo does own his or her apartment. As the owner, he or she is responsible for paying all property taxes. Like the co-op, he or she will also pay a monthly maintenance fee, referred to as common charges or CC, and will also be subject to an application approval process and conforming to building-specific rules that are set by the condo board. This being said, purchasing a NYC condo tends to offer greater flexibility, and has some attractive advantages for the buyer who plans to finance.

Cond-ops: This term is usually used to describe a co-op that operates under condominium rules. Most often this is important to the investor who is concerned about the strict rental rules in co-ops. A cond-op is an apartment in a mixed-use (commercial and residential building), where the ground floor is a commercial unit that is termed a “condo” and is held by an individual or by an investor group that is separate from the residential owners’ group. The term “cond-op” is frequently misused, so be sure to ask how the term is being used when you hear it.

Answer 2

A house is a approach of authentic property possession the position you own the air area interior your unit, yet (frequently) not the land below it. You a partial possession (divided between all the unit vendors) of any "elementary aspects". A Townhouse is amazingly such as a residence, except you also own (in my opinion) the land lower than the unit. - because of this genuine city houses at the prompt are not stacked vertically, yet condos are. As with condos, you actually have a partial possession of elementary aspects. with both a residence and a townhouse, there'll frequently be association costs which conceal the upkeep of hate homes, the elementary aspects and the valuables taxes on the elementary aspects. possession of a co-op is technically not possession of authentic property. rather, you own a chunk of a organization - as a shareholder. The organization easily owns the valuables. As a shareholder, you've the right to occupy area of that construction. the benefits and downsides of all 3 ownerships should be truly convoluted and decision between the states, yet those are the needed modifications.