What is the primary distinction between a condo and a co-op ownership model?

The primary distinction between a condo and a co-op ownership model lies in the form of ownership. In a condominium, buyers own individual units outright, including a share of the common areas. Each owner holds a title to their unit and can sell it independently. This structure gives individual condo owners a degree of autonomy and ownership that is identified legally.

In contrast, a cooperative (co-op) does not operate on individual ownership of units. Instead, residents purchase shares in a corporation that owns the entire building or complex. This means that when someone buys into a co-op, they are purchasing a share of the overall entity rather than ownership of a specific unit. This share grants them a long-term lease to occupy a unit, but it does not confer the same ownership rights as a condo title.

Understanding this distinction is crucial for prospective buyers as it affects everything from financing options to property tax implications and governance. The other aspects, such as management, property type, and maintenance responsibilities, can vary between condos and co-ops but are not the defining factors of the ownership structure itself.