When you buy a condo, you own a specific apartment plus a share of the building’s common areas. When you buy a co-op, you buy shares in the corporation that owns the whole building, along with the right to occupy your apartment – and the purchase usually needs board approval. The type of ownership shapes the paperwork, the monthly charges and the rules for selling or subletting later.
Most apartments for sale in New York are either condos or co-ops. From the outside the buildings often look alike, but for a buyer the differences are significant – from the documents you have to submit to the rules for renting the apartment out in the future. This guide answers the questions buyers, sellers and renters ask most often.
How is a condo different from a co-op?
A condo owner holds a deed to the apartment. Each month the owner pays common charges for the upkeep of shared areas, and pays property tax separately on the unit. Building rules are usually less strict, including rules about renting the apartment to someone else.
In a co-op you buy shares in a corporation, and the monthly maintenance covers the cost of running the building and usually part of the property taxes as well. The amount depends on the number of shares assigned to the apartment. Co-ops often have their own rules on renovations, subletting and the required down payment.
What does buying a co-op apartment involve?
After the offer is accepted, the buyer submits a package of documents to the co-op board – typically information about income and savings, tax returns and references. An interview with the board often follows. The board can approve or reject the purchase, so it pays to prepare the documents early and carefully.
Before making an offer, learn the building’s rules: the monthly maintenance, the required down payment and the policies on renovations and subletting. A broker helps you gather this information and plan the next steps.
What should you keep in mind when selling an apartment?
Selling a condo works much like selling a house. With a co-op, you need to allow time for the board to approve the buyer, so the whole deal usually takes longer. In both cases it matters to prepare the apartment for showings and to have complete information ready: monthly charges, building rules and the condition of common areas. Buyers compare many similar listings, so a well-kept apartment with full information stands out.
Talk about selling or buying an apartment: 347-647-6397
Renting an apartment – what to ask before you sign
Tenants should read the lease carefully: its length, the security deposit, what is included in the rent (for example heat and hot water) and the renewal terms. Visit the apartment at different times of day and ask about noise, heating and the condition of the building’s common areas. Some buildings are subject to special rent rules, so it is worth asking about them before signing.
Owners who want to rent out their apartment should check the building’s rules first – especially in a co-op, where subletting often requires board approval.
How to prepare for your conversation with the broker
- Buyers: a budget and a mortgage pre-approval. For a co-op, also a rough picture of your income and savings, because the board will ask.
- Sellers: details about the unit. Monthly charges, building rules and past renovations.
- Renters: your move-in date and budget. Also whether you need room for a pet or parking.
- The neighborhood. Commute, public transportation, stores and whether the building has an elevator or laundry.
- Your questions. What costs a buyer should expect, how long board approval takes and when to bring in an attorney.
Małgorzata Pieniądz of Trademarko Realty in Ridgewood helps clients buy, sell and rent apartments in Queens, Brooklyn and Long Island, in English and in Polish – see her Polish Pages listing.
Common mistakes with apartments
Buyers often compare prices alone and overlook the monthly charges, even though those charges drive the cost of living there for years. Another mistake is making an offer on a co-op without the documents ready, which delays or complicates board approval. A third is signing a lease without reading it carefully.
Sellers, for their part, list an apartment without complete information about charges and building rules, and buyers lose interest. If you are thinking about buying or selling a house, see our guide to buying and selling a house in Queens and Brooklyn.
Talk to Małgorzata Pieniądz: 347-647-6397
This guide is for informational purposes only and does not constitute legal, tax or financial advice. For legal and tax matters, please consult an attorney and an accountant.
