Condos
Co - Ops
Condo owners own “walls in,” meaning they own only the walls inside of the unit itself. All unit owners collectively own and share any common space (hallways, courtyards, etc.). However, it’s possible you will own the AC unit that sits outside of your unit. Window replacement depends on the condo association. Condos fees are typically higher than homeowner association (HOA) fees. Condo owners pay monthly for the maintenance of the property. The size of your unit usually corresponds to how much of the condo fee you pay and the percentage of votes you receive in the community. Your size represents the percentage of the condo building you own. Condo owners can customize their unit; however, be sure to review the condo documents carefully if you are thinking of moving walls or making major changes.
Co-ops are a totally different form of ownership. Think of co-op ownership much like buying shares in a corporation. The co-op corporation owns the building and the land on which it sits. Instead of buying a unit, the buyer of a co-op is buying shares in the cooperation. The cooperation then assigns the buyer the “right” to occupy a specific unit. Co-op ownership is considered personal property rather than real property. Co-op fees are generally higher than condo fees and usually include property taxes, building maintenance, and the underlying mortgage. Co-ops tend to have very strict rules regarding renting out the unit and bringing pets into the home. Co-ops often require higher down payments. Lastly, co-op boards vet all potential new owners, so be prepared to submit a lot of personal information and sit through an interview. Because of the type of ownership and the restrictions that come with co-ops, the prices tend to be a bit lower than condos. Co-ops can be harder to sell. Keep in mind that many lenders also do not offer loans for co-ops, so you would need to work with a lender that has been approved by the building.
Townhouses
Townhouse owners own the home itself and the land on which it is sited. In real estate lingo, this means it is owned “fee simple,” just like a detached house. Unlike a condo, townhouse
owners are responsible for all exterior maintenance, including the roof. Some
townhomes are a part of an HOA (usually this pertains to town-homes built after 1980). HOAs may have rules or restrictions about exterior paint colors, landscaping, and other aesthetics. HOA fees are typically much lower than condo fees since they don’t cover the same level of maintenance as a condo. Dues might be paid monthly, quarterly, or yearly depending on the association.
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