Condominium or Co-op? What's the difference, and which is best for you?

Sep 5

You may not have ever known there was a difference, or even cared, for that matter. However, if you are about to embark on a purchase of a condo, you have probably seen a co-op or two in your search. It's certainly an appropriate time that you know and understand the difference.

Both condominiums and co-operatives are considered Common Interest developments (CID's) The terms 'co-op' and 'cooperative,' are short for 'cooperative housing project.' Cooperatives are fairly common in New York and are found more in the Northeast than in any other part of the country. There are only a handful of co-operatives in Fairfield County, so if and when you run across one, you should be quite clear on the differences, so when given the choice, you can make the best decision

Condominiums are individual homes that are owned by the the Unit Owner, with fee simple title. The Unit Owner also owns an undivided interest in the common elements, such as hallways, exterior walls, recreational areas and roofs. Each unit has their proportionate share of expenses, called Common Charges, or Common Fees. When you receive your by-laws, there will be a section that lists your particular unit's percentage of the complex. Common fees vary from complex to complex in monthly charges, and also what is included, so again- check those by-laws to see what exactly is covered by your fees.

Cooperatives are owned by a Cooperative housing corporation. I usually refer to ownership in this way- You are buying shares of stock in a corporation, and rather than getting a dividend payment each month, you get a place to live. The corporation owns the common areas. So you do not OWN the co-op, the corporation does. The upside of co-op ownership? They are typically a lot less expensive than condominiums

There are roughly about 3200 co-ops in Fairfield County- including over 2100 in Bridgeport alone. There are two in Stratford, and Norwalk has one cooperative complex. Stamford also has a number to choose from. Whether you are in the market for a coop or a condo, your resident expert (That's me!) is just a phone call, or email away.