Condo vs. Coop

By
Real Estate Agent with Halstead Property

My own personal experience has convinced me to never own a coop. I owned a condo for six years with no issue... my coop is constantly adding legal fees and maintenance supplemental charges to my bill without prior notice or consent.  I am financially strapped by my coop, as it is less flexible in lending, and to top it all off, the coop sold the air rights for $5MM and was unable to distribute the proceeds to the shareholders!  If it was a condo, I would have had a windfall...

I was a board member of both my condo and coop.  My coop has a high number sponsor-owned units.  The sponsor is a very compelling NYC Real Estate Mogul with his best interests at heart and has been very persuasive in his recommendations to the board. The owner also owns the managing agent.

There is no way to remove the sponsor or the managing agent from the picture.  These are red flags to consult with your attorney the risks before purchasing.

As a REALTOR, I do not give legal advice, but can share my personal experiences and explain the differences between condos and coops.  The choice, ultimately, is up to the buyer...

Comments (1)

Dina Caffrey
Coach Realtors - Rockville Centre, NY

You should get on the co-op board to help make some of those decisions. It is a great place to keep informed of the inside happenings of the building.  Does your board have annual meetings? Do you get a financial report every year from the managing company? We have a co-op in Manhattan for 20 years and it has been a great investment, and a pleasure to own.

Sep 18, 2009 10:51 PM