| Condominium | Co-op |
| 10 Apartments | 10 Apartments |
| Each apartment is individually owned, therefore there are 10 owners. Monthly payments are called common charges. | Building owned by a corporation with all 10 co-op owners collectively owning all the shares of the corporation. Monthly payments are called maintenance charges. |
| The 10 owners will elect from themselves: President Vice-president Secretary Treasurer This board will make all rules and money decisions. Some decisions will require a vote of all owners. |
Same |
| All heat and maintenance costs will be shared by all owners. | Same |
| Real estate taxes are divided by 10 and each owner is billed independently by the city. Real estate taxes are tax deductible. | Real estate taxes of the entire building are paid by the corporation and the cost is added to the monthly maintenance. Taxes are divided by 10 and each cooperator can deduct 1/10 of the real estate taxes. |
| Officers will hire a management company. The management will, according to the rules of the condo, collect common charges, hire and supervise the superintendent and pay all bills. The management company can make minor financial decisions. | Same |
| The board will appoint a resale committee to approve potential new owners. They will check the buyers ability to financially carry their share of the condo's commons charges (normally does not go beyond financial ability). | Same |
| Condominiums have fewer rules (a double-edged sword). | Co-ops will set up house rules normally exercising corporate powers over items like the amount of children living in an apartment, if pets are to be allowed, financing limitations, sub-leasing, etc. |
| No waver fee to be paid to condominium at the time of sale (100% equity). | May or may not have a waver fee (a fee to be paid to the co-op when you sell, usually resulting in lower maintenance charges as the money goes back to the corporations general fund to be used to run and maintain the building.) Waver fee may be any amount and is created and modified by a vote of the co-op owners. |
| At time of major repairs, a condominium can not borrow money. Each owner is assessed 1/10 of the repair. If they don't have money, they must individually borrow money. | Because a co-op is a corporation, it may borrow money at the time of major repairs. However, the monthly payment of that loan will be divided by 10 and added to the monthly maintenance fees of the co-op owners. |
| A condominium does not have an underlying mortgage. | A co-op usually has an underlying mortgage. The monthly payment is divided by 10 and paid in the maintenance. The interest on that mortgage is tax deductible and each co-op owner can deduct 1/10 of the interest. |
| All below are paid by owner: Common charges (Repairs. & Heat) R/E Taxes Gas & Electric 100,000 mortgage TOTAL: |
Monthly $200.00 $100.00 65.00 $1,053.22 $1,418.22 |
Payed by Corporation Repairs & Heat R/E Taxes Gas & Electric $50,000 underlying mort. Payed by Owner Maintenance $50,000 co-op loan TOTAL: |
Monthly $200.00 $100.00 65.00 $526.61 $891.61 $526.61 $1,418.22 |
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