What is the difference between a condo and co-op?

When you purchase a condominium, you own the actual unit itself. You also have rights to use common areas, such as the exercise room, the party room, and so forth. Fees are charged against occupants for maintenance, insurance and management of these common areas.

When you buy into a co-op, you do not own the actual real estate or the apartment. Instead, you own shares or a membership in the cooperative housing corporation. The corporation owns the underlying real estate.  Typically, taxes, mortgage payments and maintenance expenses are shared by the tenants as monthly maintenance charges.

Co-op apartments often come with approval requirements—which vary greatly from building to building.