Our job at Domain Properties is to help you select the type of apartment and neighborhood that is best suitable for you, to educate you about real estate prices, and to match you with the agent that best suits your style and preferences.
New York City consists mainly of cooperative and condominium apartments with a smaller selection of private homes, which we call townhouses or brownstones. Understanding the difference between the types of apartment is very important.
A Condominium apartment in Manhattan is real property. The buyer gets a deed just as if he were buying a house. There is a separate tax lot for each apartment, which means the buyer pays his own real estate taxes for the property, and will also pay common charges on a monthly basis. Common charges are similar to maintenance in a cooperative, however, they will not include real estate taxes since these are paid separately, nor will they include the building’s mortgage and interest given that a condominium, by law, cannot have an underlying mortgage. Condominiums are attractive for a variety of reasons:
Because there are fewer condominiums than cooperatives and that they are “easier” to purchase, they are generally more expensive.
In New York City, approximately 80% of our apartments available for purchase are in cooperative buildings, while 20% are in condominiums. This means:
Cooperatives are owned by an apartment corporation. Individual tenants do not actually “own” their apartments as they would in the case of “real” property. Owners, (shareholders) of co-op apartments, actually own “shares” in the corporation, which entitles them to a long-term “proprietary lease.” The corporation pays the total amount of the building’s mortgage, (a cooperative may have an underlying mortgage for the entire building, whereas a condominium building must be owned outright), real estate taxes, employee salaries, and other expenses as determined by the number of shares the tenant owns in the corporation. Shares amounts are dictated by apartment size and floor level.
Please note: when buying a cooperative
It is important to remember that co-ops are the norm in Manhattan and before beginning a search think about the financing limitations, application and the interview process.