The North Jersey housing market includes many condominium and cooperative complexes. Due to our affiliation with our condo division
a significant amout of our business is from the condo/coop market. We are often asked...what's the difference between a coop and a condo?
Here are the basic differences in the 2 forms of community living:
•· Form of ownership - shares in a corporation that owns the coop complex. A proprietary lease is issued establishing occupancy terms. There is no deed recording or recording of sale information.
•· Board approval is required. Board may accept or reject any applicant owners or tenants. Application fee may be required.
•· Monthly maintenance fee covers building and grounds upkeep, your portion of real estate taxes, payment of underlining coop loan(s), and sometimes heat and hot water. 40 - 60 % of these fees may be tax deductible.
•· Real Estate taxes - included in maintenance.
•· Financing - Most coops have financing restrictions like minimum down payment and income minimums.
•· Subletting or renting - generally requires Board approval.
•· Form of ownership - deed is recorded at the county clerks office. This deed is transferable as is any other house or property. You own the condo.
•· Board approval is not required in most instances.
•· Monthly maintenance covers common charges such as building and grounds upkeep and amenity expenses. Generally these fees are not tax deductible.
•· Real Estate taxes are paid on an individual basis by each condo unit owner.
•· Financing - the only restrictions are those required by the individuals lender.
•· Subletting or renting - usually no restrictions.
Thinking of a condo or coop of your own? Call your North Jersey Real Estate Team
Jim Albano and Jean-Marie Vantuno
39 E. Main St.
Little Falls, NJ 07424
Visit our website: www.yourhomenorthjersey.com