This condo, at 26 John St in Bloomfield, can be yours for $140,000.

Condominiums and Cooperatives are two different types of home ownership.

In condominium ownership, the condo buyer owns an individual unit in the development. They also own, along with the other units' owners, the common areas such as swimming pools, clubhouses, parking lots, lobbies, etc.  The common areas of the development are usually controlled and maintained by an owners' association which charges each owner a monthly fee or association dues. Owners are granted a unit deed to their individual unit. 

In cooperative ownership, the residents of the building become stockholders in a corporation that owns the real estate and have the right to occupy a unit in the development. Rather than rent, each tenant pays a montly rate to cover operating costs, mortgage payments, taxes, and salaries of employees of the cooperative development. Owners are granted a proprietary lease and therefore the ownership is of personal property rather than real property except as provided by the IRS for tax purposes. 

 




~ Wayne & Jean 


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If you're looking to buy or sell a property in Union County, call us at 908-917-4189 or email TeamZuhl@gmail.com.

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All opinions, information and data provided is deemed reliable but is subject to errors and omissions. Not intended to solicit other Brokers' clients. We cooperate with them fully. 

 
This post has been included in New Jersey Real Estate News

12 Comments on Co-ops and Condominiums - What's the Difference?

MAR
06
1,450,994 Points 46 Featured Posts Outside Blog Called Shot Master

This is good information for consumers. I hope buyers will read this post.
4:23am • #1
313,912 Points Outside Blog

Great Info!!    This is some good Info for all in the market, keep up the good work and good luck in 2013,  E
4:28am • #2

Thanks for the information, the better informed we are the better serviced the consumer is.
4:37am • #3
119,262 Points Outside Blog
I was wondering what a Co-op was and now I understand the difference between Co-ops and Condominiums. Since it's a lease then any mortgage interest payments would not be tax deductible, correct?
4:58am • #4
729,231 Points 15 Featured Posts Outside Blog Called Shot Master

Wayne and Jean Marie, there is a big difference in the type of ownership. If a condo goes to foreclosure, it only affects the condo owner. If a co-op goes to foreclosure, it affects everyone in the co-op. We have some co-ops in Northern Virginia, but not very many.
5:05am • #5
484,568 Points 51 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

We have mostly condos here, but there are a few co-ops and people really don't know what they are.  They are both a home though!
7:44am • #6

Well said!
8:01am • #7
496,216 Points 149 Featured Posts Outside Blog Hit Router Called Shot Master

Wayne & Jean:  LOVE love love that you are educating your readers (and other professionals) as to the different types of properties and ownerships available to them.  It's a topic that desperately needs explaining.  I run into properties that look like one and are actually another ... and it can cause real havoc within a transaction.  The better we're all educated about this topic, the better ... and you certainly helped with that!

Gene
8:33am • #8
946,592 Points 8 Featured Posts Outside Blog Called Shot Master

Excellent info for the consumer, for sure!
9:26am • #9
1 Featured Post Outside Blog

Good to know.  We have tons of condos around here but no co-ops so I often have a hard time with this myself.  THanks for the post.
11:58am • #10
1 Featured Post Outside Blog Called Shot Master

Great information. Good job of making it simple to understand.
5:21pm • #11
MAR
07
299,146 Points 21 Featured Posts Localism Sponsor

Wayne and Jean - Thanks so much for taking the time to post this.  I've been in the buisiness for over 20+ years and I still get confused about these two types of properties - not anymore!  We have many many condos here, but very few coops.
8:07pm • #12


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Wayne and Jean Marie Zuhl

Clark, NJ

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Hallmark Realtors

Address: 112 Westfield Avenue, Clark, NJ, 07066

Office Phone: (732) 499-0030 x 244

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