A Co-Ownerwhat?
January 24, 2011
I wrote in an earlier post that my home was quite low in price for the area. Before you start thinking I bought a dump, the reason my unit was priced much lower to similar in the area is simple - it's a co-ownership, not a condo.
When I first heard that the unit was a co-ownership, I assumed I knew what that was - I mean, I've watched 'Sex and the City' - Carrie lived in one, right? Wrong. She lived in a co-operative, which is not the same as a co-ownership. Anyone else confused?
At the time I was looking I did a quick internet search (gotta love Google) so I'd have a basic understanding. Below you'll find some of the differences and similarities between condos, co-ops and co-ownerships. *Please note that these are as I understand them to be - if you're considering purchasing a co-ownership, please consult your real estate lawyer for all the details.
Condo
- Each unit is a separate property which can be bought and sold
- Condos can be mortgaged
- Owners of the units in the building will also own shares in the common elements of the building that are proportionate to the size of their unit
Co-Operative
- The entire property is owned by a corporation
- The 'buyer' of a unit owns shares in the corporation, and is granted exclusive rights to use that specific unit
- Shares can be mortgaged
- Buyers are not registered on title for the property
- Generally most banks will not loan for a co-op, but some credit unions will
Co-Ownership
- There is just one property, and all the owners are listed on the title for the property
- Owners have a proportional share of the entire property and are given the exclusive right to occupy their unit
- Shares can be mortgaged
- Generally most banks will not loan for a co-ownership, but some credit unions will
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