Why Were Condops Created In The First Place?
How Is A Condop Different From A Coop And A Condo?
Condop vs. Coop
1. Condominium Board –It looks over the building as a whole (both commercial and residential space)
2. Commercial Board –It’s dedicated to commercial space in the building
3. The Co-op Board– It oversees all the residential units, which acts like a typical coop board (and is elected by the residents)
- Lower available inventory compared to pure co-ops.
- The co-op board may lack power compared to the commercial board, so decisions that may impact both (like common charges) may be made in favor of commercial tenants rather than co-op shareholders.
- The wrong type of commercial tenants may become a problem for co-op residents. Even though it’s also possible in a co-op that may have some commercial space, the resident shareholders usually have more power over who to lease the commercial space to.
- Condop sellers might have a difficult time attracting good buyers if there isn’t harmony in different condop boards, which may create additional complications for the shareholders.
- The buyer’s lawyer will have to go through two sets of financials for the building instead of one in a co-op.
Condops vs. Condominiums
For residential unit holders/shareholders, a condop (like regular co-ops) is different from a condominium in the following ways:
- Buyers get shares in the corporation, not ownership of real property.
- There are lower closing costs for condop buyers, thanks to no mortgage recording tax.
It may be cheaper compared to a condo but more expensive than a typical co-op.