Condo vs. Co-op: What's the Difference?

When you're looking to buy a home, you'll encounter all sorts of terms and property types. Two of the most common, especially in urban areas, are condominiums (condos) and cooperatives (co-ops). While both offer a way to own a piece of a larger building, they have fundamental differences that can significantly impact your ownership experience.

Let's break down what a co-op is and how it stands apart from a condo.

What is a Condominium (Condo)?

Most people are familiar with the concept of a condo. When you buy a condo, you are purchasing a specific unit within a larger building or complex. This means you own the interior of your unit, including the walls, floors, and ceiling, from the paint inward.

Along with your individual unit, you also own a percentage of the building's common areas. These "common elements" typically include:

• Structural components: The exterior walls, roof, and foundation.

• Amenities: Lobbies, hallways, elevators, gyms, pools, and parking garages.

• Land: The property on which the building sits.

Condo owners pay monthly homeowner's association (HOA) fees, often called "common charges," to cover the maintenance, repairs, and insurance of these common elements. They also pay property taxes directly on their individual unit.

Key characteristics of condo ownership:

• Real property ownership: You own real estate.

• Direct property taxes: You pay taxes on your unit.

• Fewer restrictions on selling/renting: Generally easier to sell or rent out your unit, though the HOA may have some rules.

• Easier financing: Mortgages are readily available.

Here's an example of a modern condo building, showcasing individual units and common spaces.

What is a Cooperative (Co-op)?

This is where things get a bit different. When you buy a co-op, you don't actually purchase real estate in the traditional sense. Instead, you are buying shares in a corporation that owns the entire building.

These shares entitle you to a proprietary lease for a specific unit within the building. This lease is typically for 99 years, which guarantees ownership of a specific unit. Think of it like this: the corporation owns everything – the building, the land, all the units, and all the common areas. You, as a shareholder, essentially become a part-owner of that corporation, and your shares grant you the exclusive right to occupy a particular apartment.

Key characteristics of co-op ownership:

• Shares in a corporation: You own personal property (shares), not real estate.

• Utilities included in fees: The monthly co-op fee typically includes all of your utilities as each unit is not metered separately, and the building use is divided among the tenants.

• No direct property taxes: Property taxes for the entire building are paid by the corporation, and your share of those taxes (along with maintenance and other building expenses) is included in your monthly "maintenance fees."

• Board approval process: This is a major differentiator. To buy into a co-op, you must be approved by the co-op board. This helps provide stability in the building's ownership.

• Subletting restrictions: Co-ops typically have much stricter rules regarding subletting your unit. Some may prohibit it entirely, while others allow it only for limited periods and with board approval.

• More difficult financing: Lenders provide "share loans" rather than traditional mortgages, and down payment requirements can be higher.

• Often more affordable: Co-ops can sometimes be less expensive than comparable condos due to the restrictions and different ownership structure.

Imagine the building as a single entity, owned collectively by all the shareholders.

Condo vs. Co-op: A Quick Comparison

Feature	Condominium (Condo)	Cooperative (Co-op)
Ownership	Own individual unit (real property)	Own shares in a corporation (personal property)
Taxes	Pay property taxes directly on your unit	Property taxes are included in monthly maintenance fees
Monthly Fees	HOA fees / Common charges	Maintenance fees (include taxes, mortgage, expenses)
Board Approval	Minimal, often just for major renovations	Extensive, required for all buyers
Selling/Renting	Generally fewer restrictions	Significant restrictions often require board approval
Financing	Traditional mortgage	Share loan
Legal Document	Deed	Stock certificate and proprietary lease

Which One is Right for You?

The choice between a condo and a co-op often comes down to your priorities and location.

• Choose a Condo if: You value direct ownership, want more flexibility in selling or renting, prefer a simpler approval process, and need easier access to traditional financing.

• Choose a Co-op if: You enjoy a stricter community, appreciate potentially lower upfront costs, and are willing to go through a thorough board approval process. Co-ops often foster a stronger sense of community among residents due to the shared ownership and vetting process.

Ultimately, both condos and co-ops can be excellent housing options. Understanding their fundamental differences is the first step in deciding which one best fits your lifestyle and financial goals. 

726 W. 6th Ave, Spokane, WA

Buy into a Co-Op in the Lively Browne's Addition

Now you can own in a co-op building in the historic Mayfair building, centrally located in Browne’s Addition! 726 W 6th Ave, Spokane, WA 99204 is available for purchase at a new, lower price-- only $165,000!

Browne’s Addition is Spokane’s oldest neighborhood, and remains one of its liveliest to this day. You’ll find summer concert series, outdoor markets, a wide range of restaurants, and parks.

See the full listing details with photos and contact information here.

Real Estate Agent Spokane

It’s a great time to own a home in Spokane! Whether you’re looking for the perfect kitchen, a walkable neighborhood, great restaurant choices, or the best schools, we can help you find just the spot! Contact the Real Estate Agent Spokane today to set up a custom search and learn more about Spokane’s diverse land and housing offerings.

Carrie Meyer is passionate about Spokane, its history, and your future. She specializes in relocation transactions and helps locals find their perfect home. Carrie has over 15 years as a full-time, full-service Realtor and 30 years of experience as a Certified Legal Assistant (paralegal) and is an expert at contracts and negotiations.