When it is time to consider a real estate move, many may not realize that there are significant differences between a Jersey City condo and a co-op. They are two different purchase options and each should be weighed carefully depending on the needs of the potential buyer.
What is a Jersey City Condo?
As more and more major corporations have moved to Jersey City and the city is enjoying a major resurgence, many are deciding to purchase a Jersey City condo. Unlike a co-op, a Jersey City condo is similar to purchasing a house. Each individual Jersey City condo owner will have a mortgage, possess a deed for the condo and pay a separate property tax bill. There is no board approval, like in a co-op situation. Each Jersey City condo owner will pay a monthly fee or assessment to either a condo board or condo management. Collectively, these fees are used to arrange for lawn care, snow removable and building maintenance. Often the complex is managed either by a board made of up Jersey City condo owners or a professional management company. Those individuals or management company oversee maintenance, paying bills and hearing complaints or grievances from condo residents.
What is a Co-Op?
Co-operative housing (known as a co-op for short), is a legal entity, usually a corporation, that collectively owns and manages by its members, which includes the people who live there. Housing co-ops are usually categorized as corporations or LLCs. Each shareholder is given the right to occupy one housing unit, which is subject to a housing or occupancy agreement, which provides the specific rules related to the living in the co-op. Co-op members actively participate in all decision making and share the working involved in running the housing location. Applicants can apply for co-op ownership and housing; however the co-op selection committee has the final say in choosing new members. Co-op fees are generally much higher than condominiums. This is because the monthly fee includes part of the underlying mortgage for the building.