Co-ops, Condos & PUDs: What’s the Difference?
Defining a Co-op A Co-op is a housing complex, which is owned by a corporation made up of all the tenants. Each tenant becomes a shareholder in the corporation that owns the property. The number of shares the tenants are issued depends on the size of their unit. The larger unit owners always have more decision making power in how the building is run. The owners also pay fees to cover their own portion of the building’s property taxes, mortgage, and costs of repairs and improvements for the common areas. Co-op owners depend on each other financially, so they can encounter a lot of scrutiny of both the financial history and personal life of each tenant. The Definition of Condominiums Owning a condo is similar in many ways to owning a house. The owner has a deed and mortgage and they have to pay property taxes. However, what the actual ownership if the condo is really just its “airspace.” They don’t personally own the walls, floors, and ceilings, as that is owned in common among all resid...