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

Manhattan is 80% co-ops and 20% condos while DC is predominantly condos. And even though from the exterior both a condo and a co-op can look the same they are two completely different creatures when it comes to ownership, financing, and property taxes. So what are some of the differences between a condo and a co-op?

• Ownership: The type of ownership a condo is fee simple or the same as a house while in a co-op you own shares of stock in the cooperative corporation
  

• Property Taxes: In a condo each unit owner is taxed separately while in a co-op you pay typically lower taxes
  

• Financing: It is easier to obtain financing for a condo than a co-op. A co-op has fewer lenders and usually requires additional documentation such as financial statements

• Tax Deduction: The owners of condominiums have the same tax benefits as if they owned a house while co-ops are more complicated
  

• Monthly Assessments: A condo includes maintenance and some utilities while co-ops include maintenance and property taxes
  

Other differences to consider when buying a condo or co-op is that condos are easier for resale than co-ops and co-ops can accept or reject applicant owners or tenants based on their financial and personal qualifications at their discretion.