CONDOMINIUMS, COOPERATIVES AND TOWNHOUSES
There are three main forms of residential property ownership in Manhattan: Condominium, Cooperative (co-op), and Townhouses.
The prevalent form of property ownership in Manhattan is an apartment in a COOPERATIVE (CO-OP) corporation, commonly referred to as a co-op. A cooperative (co-op) is a type of corporate ownership of property, in which the stockholders (shareholders) are entitled, by reason of a proprietary lease, to the exclusive use of a certain dwelling unit of space. The value of the unit is based on the number of shares allocated to that space, along with location of the building and services offered. The larger the apartment, the more shares you own. The cooperative corporation is operated by a Board of Directors, elected by the shareholders at their annual meeting. The Board sets monthly maintenance fees, and makes other policy decisions for the property. All prospective purchasers and renters must be approved by the co-op Board of Directors. The co-op Board approval process is often time consuming and rigorous - requiring extensive information regarding finances, employment, and personal background. Many co-op boards limit the amount of the purchase price that can be financed and require higher down payments than are usually required for condominiums. It can be harder to sublet a co-op. Each co-op has its own rules, but many limit or forbid subletting.
Cooperative = the building is owned by a corporation and operated for the benefit of persons living in the building. Shares in the corporation are allocated per apartment and the owners of those shares, called proprietary lessees, may live in the apartment for which shares are allocated.
Unlike condominiums, coops are not real property. Co-ops are personal property. In a coop purchase, the buyer becomes a stockholder in a corporation and receives stock certificate in his name at closing. A co-op purchaser does not get a deed, but a proprietary lease issued by the co-op corporation. Cooperative buildings often have a Flip Tax imposed upon transfer. Flip Tax is a revenue-producing tax for the co-op building and it can be paid by the seller or by the buyer.
In Manhattan, older buildings, built before 1980s, are usually co-ops.
The next most common form of home ownership in Manhattan is a CONDOMINIUM (CONDO) unit. A condominium is real property just like a free standing house. It is ownership of an individual property in a multi-unit structure, along with joint ownership of common elements such as hallways, stairs, recreations areas, etc. Condominium owners elect a Board of Managers. The Board of Managers sets the by-laws of the condominium, determines the cost of operation the building and sets the monthly maintenance expense called common charges. Unlike a co-op, a condominium apartment is real property. A buyer receives a deed just as though he or she were buying a house. Each individual apartment in a condominium receives its own tax bill. Taxes for condominium units are paid directly to the city and state, twice a year by the individual unit owner. There is still a monthly common charge similar to the maintenance charges in a co-operative. These charges don't include your real estate taxes and are not tax-deductible. They also tend to be lower than in co-ops because there is no underlying mortgage for a condominium building. The straightforward nature of buying a condo coupled with the fact, that in some cases, you can finance up to 90% of the purchase price and sublet them at will, makes condominiums the number one choice for flexibility.
Condominium= units are individually owned; common areas (lobby, elevators, hallways, facilities, etc) are owned jointly with the other condominium unit owners. Condominiums are real property and condo sales are fee simple transaction. The condominium closing includes a title search and transfer of the property by means of a deed.
In Manhattan, most buildings built from the 1980s onward are condominiums.
The third type of property available for purchase in Manhattan is a city house referred to as a TOWNHOUSE, or, by its material make-up as a brownstone (a dwelling faced with brownstone, a native New York State stone) or limestone. A Manhattan townhouse (called a townhome in other parts of the country) is a private home where at least one wall is shared with another building. Townhouse ownership is "fee simple" ownership of real property. The owner of townhouses in New York City is responsible for payment of all real estate taxes, maintenance and repairs of the property, unlike a cooperative or condominium, but there is no required monthly payment to the building's management. There is no board approval in the purchase or sale of a townhouse. The sale of the property may be conveyed to any party without prior approval by anyone other than the homeowner. A townhouse should have its own Certificate of Occupancy (CO).
Most Manhattan townhouses were built around the turn of the 20th century, with some dating back to before the Civil War. In recent decades, very few new ones have appeared. When it comes to desirable features, the most important are location and the width of the property. Standing shoulder to shoulder with other buildings, townhouses can't be broadened. The most select are 22 feet across or more. There are fewer than 3,000 townhouses on the island of Manhattan. A finite supply makes for a stable seller's market.
There are three main forms of residential property ownership in Manhattan: Condominium, Cooperative (co-op), and Townhouses.
The prevalent form of property ownership in Manhattan is an apartment in a COOPERATIVE (CO-OP) corporation, commonly referred to as a co-op. A cooperative (co-op) is a type of corporate ownership of property, in which the stockholders (shareholders) are entitled, by reason of a proprietary lease, to the exclusive use of a certain dwelling unit of space. The value of the unit is based on the number of shares allocated to that space, along with location of the building and services offered. The larger the apartment, the more shares you own. The cooperative corporation is operated by a Board of Directors, elected by the shareholders at their annual meeting. The Board sets monthly maintenance fees, and makes other policy decisions for the property. All prospective purchasers and renters must be approved by the co-op Board of Directors. The co-op Board approval process is often time consuming and rigorous - requiring extensive information regarding finances, employment, and personal background. Many co-op boards limit the amount of the purchase price that can be financed and require higher down payments than are usually required for condominiums. It can be harder to sublet a co-op. Each co-op has its own rules, but many limit or forbid subletting.
Cooperative = the building is owned by a corporation and operated for the benefit of persons living in the building. Shares in the corporation are allocated per apartment and the owners of those shares, called proprietary lessees, may live in the apartment for which shares are allocated.
Unlike condominiums, coops are not real property. Co-ops are personal property. In a coop purchase, the buyer becomes a stockholder in a corporation and receives stock certificate in his name at closing. A co-op purchaser does not get a deed, but a proprietary lease issued by the co-op corporation. Cooperative buildings often have a Flip Tax imposed upon transfer. Flip Tax is a revenue-producing tax for the co-op building and it can be paid by the seller or by the buyer.
In Manhattan, older buildings, built before 1980s, are usually co-ops.
The next most common form of home ownership in Manhattan is a CONDOMINIUM (CONDO) unit. A condominium is real property just like a free standing house. It is ownership of an individual property in a multi-unit structure, along with joint ownership of common elements such as hallways, stairs, recreations areas, etc. Condominium owners elect a Board of Managers. The Board of Managers sets the by-laws of the condominium, determines the cost of operation the building and sets the monthly maintenance expense called common charges. Unlike a co-op, a condominium apartment is real property. A buyer receives a deed just as though he or she were buying a house. Each individual apartment in a condominium receives its own tax bill. Taxes for condominium units are paid directly to the city and state, twice a year by the individual unit owner. There is still a monthly common charge similar to the maintenance charges in a co-operative. These charges don't include your real estate taxes and are not tax-deductible. They also tend to be lower than in co-ops because there is no underlying mortgage for a condominium building. The straightforward nature of buying a condo coupled with the fact, that in some cases, you can finance up to 90% of the purchase price and sublet them at will, makes condominiums the number one choice for flexibility.
Condominium= units are individually owned; common areas (lobby, elevators, hallways, facilities, etc) are owned jointly with the other condominium unit owners. Condominiums are real property and condo sales are fee simple transaction. The condominium closing includes a title search and transfer of the property by means of a deed.
In Manhattan, most buildings built from the 1980s onward are condominiums.
The third type of property available for purchase in Manhattan is a city house referred to as a TOWNHOUSE, or, by its material make-up as a brownstone (a dwelling faced with brownstone, a native New York State stone) or limestone. A Manhattan townhouse (called a townhome in other parts of the country) is a private home where at least one wall is shared with another building. Townhouse ownership is "fee simple" ownership of real property. The owner of townhouses in New York City is responsible for payment of all real estate taxes, maintenance and repairs of the property, unlike a cooperative or condominium, but there is no required monthly payment to the building's management. There is no board approval in the purchase or sale of a townhouse. The sale of the property may be conveyed to any party without prior approval by anyone other than the homeowner. A townhouse should have its own Certificate of Occupancy (CO).
Most Manhattan townhouses were built around the turn of the 20th century, with some dating back to before the Civil War. In recent decades, very few new ones have appeared. When it comes to desirable features, the most important are location and the width of the property. Standing shoulder to shoulder with other buildings, townhouses can't be broadened. The most select are 22 feet across or more. There are fewer than 3,000 townhouses on the island of Manhattan. A finite supply makes for a stable seller's market.
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