Condominium (Condo)

What it means

A form of real estate ownership where the buyer owns a specific unit (the inside walls, floor, and ceiling space) plus an undivided share of the common areas (lobbies, hallways, roofs, grounds, mechanical systems). The condo is governed by a board of unit owners and a set of governing documents — the declaration, the bylaws, and the rules and regulations. Owners pay monthly common charges to fund building maintenance and reserves, plus their own real property taxes directly. Condo ownership is different from co-op ownership. In a co-op, the resident owns shares of a corporation that owns the whole building, plus a proprietary lease for a specific apartment. Co-op boards have wide approval rights over buyers; condo boards have a narrower right of first refusal under New York law. Condo unit owners can usually sell, refinance, and rent more freely than co-op owners. Both are governed in New York by Real Property Law Article 9-B (condos) and Business Corporation Law (co-ops).

When you might hear this

A condominium is a form of ownership where the owner has title to a specific unit and a shared interest in the common areas. It is different from a co-op, where the resident owns shares of a corporation that owns the building.

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