Understanding the Difference Co-Ownership vs. Condos vs. Co-Ops
- Each suite is a separate piece of real estate which can be bought, sold and traded in the market
- In addition to owning the unit the buyer will own proportionate shares of the common areas of the property
- Condos can be mortgaged
- There is only one piece of real estate and each buyer is registered on title to the property
- All buyers own a proportionate share of the entire property and are given the exclusive rights to occupy one of the units in the building
- These shares of ownership can be bought, sold and mortgaged. With condos and co-ownerships (but not with co-ops) you can mortgage your interest in the property without causing liability to the other unit owners and without getting consent from the property's Board of Directors.
- Although most banks will not finance co-ownership properties there are a number of credit unions and HSBC will finance a co-ownership purchase.
- The property is owned by a corporation and not by the residents
- The buyer owns shares in this corporation and has the right to occupy a specific unit within the property
- Buyers are not registered on title to the property
- These shares can be bought, sold and traded
- Shares can be mortgaged but not the property itself.
- Although most banks will not finance co-ops there are a number of credit unions and other financial institutions that will.