What's the difference between a condominium and a coop?

Answer 1

With a condo, you own your unit fee simple from the floors to the ceiling to the walls, plus you own an interest in the common areas. You own a specific condo unit.

With a coop, you live in a building that is owned by a corporation. The corporation's shareholders are the people who live in the building. Because you own shares, you can have what is called a proprietory lease. This allows you to live in a unit within the building. You and the other shareholders/occupants cooperatively own the entire building, as opposed to each owning specific units. But, of course, the only reason anyone would purchase your shares is because they want to move into your unit.

Often, several buildings owned as cooperatives will be on a single piece of property, or within a single development. Each of the coops will be a member of a master association, which governs the entire development.

Coops will sometimes have mortgages on the building. Individual occupants may also have mortgages for their shares. Condo homeowner associations rarely carry mortgages. This can mean that a coop is cheaper to purchase, but have very high HOA fees, or maintenance payments.

Coops can be found across the country, but are mostly popular in the older Northeastern cities, such as Boston, New York, and Philly.