By Hillel Fried, Licensed Associate Real Estate Broker (NY license 10301213249), founder of The Hillel Team at Compass. Updated November 2026.
Quick answer
The difference between a condo and a co-op is what you actually own. The New York State Attorney General puts it this way. In a co-op, "a purchaser buys shares in a corporation," and owning those shares "entitles the purchaser to a long-term proprietary lease for the apartment."
A condo, in the Attorney General's words, gives you "separate (individual) ownership of a unit" and an "undivided interest in the common elements of the building."
Everything else on this page follows from that one difference.
Co-op | Condo | |
|---|---|---|
What you own | Shares in the building's corporation, with a proprietary lease | Your unit, plus a share of the common areas |
Monthly cost | Maintenance, set by the number of shares your apartment carries | Common charges, plus your own property taxes |
Getting approved | Board package and usually an interview. The board can say no | A lighter review in most buildings |
City mortgage recording tax | Doesn't apply to a co-op loan | Applies to your mortgage |
Renting it out later | Set by the building's rules, often strict | Usually more flexible, but check the building |
Who it tends to suit | Buyers who plan to live there and want a stable building | Buyers who want flexibility, or may rent it out |
In a co-op, the Attorney General notes that "each co-op owner pays maintenance charges based on the number of shares allocated to their apartment." That one bill normally covers your share of running the building, and of the building's own costs.
In a condo, you pay common charges to the building and your own property tax bill on top. So when you compare two apartments, compare the total each month, not just the asking price.
There's no official figure we can point to, and prices depend on the building. The reasons buyers and agents usually give are about who can buy:
The result for you: a co-op can get you more space for the money, if you're happy to live by the building's rules.
A co-op tends to make sense if you plan to live there for years, you're comfortable sharing your finances with a board, and you like the idea of neighbors who were vetted too.
A condo tends to make sense if you want the option to rent it out, you're buying with an unusual financial picture, or you'd rather skip the board interview.
Neither one is better in general. One will be better for what you're planning.
This matters for condos and co-ops alike. A new building, or one being converted, sells through the sponsor. Everything else is a resale from an owner, and the rules are different.
Buying from a sponsor, you buy under an offering plan. The Attorney General's guide says the text of the offering plan "governs the sponsor's obligation regarding the size and construction of the buildings," and that buyers "should not rely on advertising brochures, verbal statements from selling agents or beautiful pictures of architect's renderings."
Buying from an owner, the same guide says "the sale is not regulated by the Attorney General and no offering plan is required." Your contract, and your attorney's review of the building, do that work instead.
We've worked in New York since 2014, across 800+ transactions and $1.3 billion in sales, and we've been named the #1 Team at LGF Compass eight times. In their reviews, our clients mention co-ops and condos both, and the board side of co-ops comes up often.
"His sharp negotiation skills ensured a favorable deal, and his recommendations for other experts eased the entire process." Co-op buyer, Upper East Side, 2023 (Zillow review)
"When our bid was not accepted he came up with a solution that sealed the deal." Condo buyer, Turtle Bay, 2016 (Zillow review)
It depends on your plans. A co-op often costs less to buy but comes with a board and stricter rules. A condo is more flexible, especially if you might rent it out.
Board approval, financing limits and sublet rules narrow the pool of buyers, and a higher monthly maintenance can sit behind a lower price.
You own shares in the corporation that owns the building. The shares give you a long-term proprietary lease on your apartment.
Yes. A condo has a board of managers that runs the building, but buying in usually doesn't involve the same approval process as a co-op.
Not the city's. New York City's Department of Finance says mortgages on individual co-op apartments don't incur its mortgage recording tax. Condo mortgages do.
Usually a condo. Co-ops set their own sublet rules, and many limit it.
Not sure which one fits what you're planning? Call us and tell us how long you'll stay and how you'd like to pay. We'll tell you which buildings make sense.