front of townhouseThere are two very different types of real estate purchases in New York. 
Both are quite common. If you are unfamiliar with the differences please read below.
The two most common types of purchases (and different types) of apartment buildings are a cooperative and condominium.

You may also want to read the article:
10 Questions to Ask When Buying a Co-op or Condo

We also include information regarding closing cost for co-ops, condos and townhouses.

If you need information regarding the different types of
building descriptions we have that information for you.


1.The cooperative is not real property BUT shares in a Corporation.

2. Shares of stock are issued to each apartment. The shares are different amounts depending upon the unit.

3. The Cooperative (The Co-op) owns the entire building, encompassing the apartments. In many cases the cooperative will also own the land.

4. The owner receives a Proprietary Lease which governs the Corporation.

5. The mortgage on the building is called the: Underlying Mortgage.

6. The Purchaser obtains a loan from a bank for an amount less any cash down payment.

7. Maintenance Charges: These are monthly charges to cover the following: building real estate tax, building maintenance and the underlying mortgage payments.

8. Tax Deductions on Maintenance: Your units portion of interest from the underlying mortgage as well as real estate taxes.

9. Board Approval is required. This usually requires an extensive Application Package as well as an Interview. The Exception to board approval is purchasing a  Sponsor Apartment.

10. Financing: Co-op boards may require a maximum percentage allowed, such as 80%, 75%, 50% as well as a substantial amount of assets available after financing.  


1.The condominium is real property, such as buying a home.

2. Common Charges: apply monthly. This includes the monthly upkeep for management, salaries for staff, insurance, building care, and fuel for the building.

3. Real Estate Taxes: You pay your apartments portion on a monthly basis. This is paid directly to your mortgage company (if financing) or the city.

4. Financing: You can finance the amount of your choice (as approved by the bank not the building).

5. No Board of Approval, No Interview. No extensive application package. Although the Condo has right of first refusal on sale and may require a simple application or package.

6. Closing Costs: Higher than a Co-op because this is real property not shares in a Corporation.

7. Closing on the Condo: You will receive a deed title as opposed to proprietary lease(Co-op). The title will be filed with the County Clerk.


10 Questions to Ask When Buying a Co-op or Condo

Before you buy an apartment, here are some questions you may want answers to:.

1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.

2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them. And have an attorney review property docs for you.

3. How much does the association keep in reserve? How is that money being invested?

4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.

5. What does and doesn’t the assessment cover—common area maintenance, recreational facilities, trash collection, snow removal?

6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.

7. How much turnover occurs in the building?

8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.

9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren’t in good repair, they become your problem once you buy.

10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.

The Barshay Team
Barshay Brokerage Real Estate Group, LLC
Ph: 212.645.8866  -  Fax: 212.645.8809
275 Seventh Avenue 7th Floor
New York, NY 10001


Real Estate Glossary |  Are Banks Lending? |  NYC Building Descriptions |  Real Estate Glossary |  F.A.Q's |  Pre-Qualify Now |  How Large A Mortgage Can I Afford? |  Room Design Planner |  Home |  Welcome |  Welcome To the Financial Center |  1031 exchange |  Awards & Links |  NYC Condo, Co-op, Townhouse Closing Costs |  Local Schools |  Local Weather |  NYC Area Info |  Rental Application |  Our Philosophy |  Certified Real Estate Brokerage Manager-CRB |  8 Steps for getting your Finances in Order |  Reasons to Purchase |  Steps to Prepare For Purchasing |  Tips For Buying In a Tight Market |  Co-op and Condo Info |  Seller Closing Articles-2 |  What is an Appraised Value ? |  Understanding Capital Gains in RE Tax |  Tips For Packing Like a Pro |  How Large a Mortgage Can I Afford? |  Professional Affiliations |  Budget Basic Worksheet |  Moving Tips For Sellers |  12 Financial Articles & Loan Information |  Understanding Agency |  Ways to Speed Up Your Sale |  Different Type of Leases |  NYC Building Descriptions |  12 Financial Articles & Loan Information |  Press |  Link to Me |  Union Square History |  NYC Neighborhood Virtual Tours |  Link Directory |  Gramercy Park History |  Lowes: News You Can Use |  Room Design Planner |  Living in Lower Manhattan |  Green Advice & Energy Savings Tips |  33 Greenwich Avenue Building Specialist |  What Is A Sponsor Unit? | 

LinkUAgent - Link Partner

LinkUAgent Partner

      Real Estate Directory    This site and are partners in providing information and resources to real estate consumers. - Real estate Yellow page and real state directory
    REALS.COM - #1 Real Estate Directory
REALS.COM - #1 Real Estate Directory    
Powered by LinkURealty - Real Estate Web Design & Websites