Cooperatives, or Coops make up almost 80% of Manhattan’s residential real estate market. When purchasing a Cooperative apartment, one purchases shares of stock in a Corporation that owns the building and the land beneath. A stock certificate representing the purchased shares and a proprietary lease giving the right to occupy the apartment are conveyed at closing. Estimated time to close: 4 months.
Condominiums are becoming very popular in Manhattan as more and more new buildings are constructed. A Condominium is similar to the ownership of real property. A purchaser of a Condo takes title by deed for not only the apartment but also a percentage of the building’s common areas. Each owner pays property taxes to the city and common charges to the Board of Managers for their individual units. Real estate taxes are deductible, common charges are not. Estimated time to close: 2 months.
A Condop is a residential cooperative where the ground floor (typically commercial units) is converted into a separate Condominium owned by either an outside investor or the original sponsor of the building. Because the owner of the Condo is not the owner of the Coop, the Coop does not receive the benefit from Condo income. Cooperatives that operate in the style of a Condominium are commonly yet inaccurately referred to as Condops. Estimated time to close: 2 months.
A Town house is real property and as such the owner receives a "fee simple" deed. The owner is responsible for payment of real estate taxes and upkeep including utilities. Estimated time to close: 3 months.