A condominium (condo) is a form of real property ownership where individual units within a building are separately owned, while common areas (hallways, lobby, roof, elevators) are shared by all unit owners. When you buy a condo, you receive a deed to your specific unit and an undivided interest in the common elements.
Common charges are monthly fees paid by all condo owners to cover the building's operating expenses. These typically include building insurance, maintenance of common areas, staff salaries (doorman, superintendent), utilities for common areas, and contributions to the reserve fund. Common charges do not include your individual property taxes.
Unlike co-ops, most condo boards do not have the power to reject a buyer. However, many condo buildings have a "right of first refusal," which means the board has the option to purchase the unit at the same price and terms. In practice, this right is rarely exercised.
Generally, condo owners have more flexibility to rent out their units compared to co-op owners. However, individual buildings may have restrictions on subletting — such as minimum ownership periods before renting, limits on lease terms, or requirements to notify the board. Review the building's bylaws and house rules carefully.
The fundamental difference is ownership: condo owners own real property (their unit), while co-op owners own shares in a corporation. This affects financing, board approval, subletting rules, and tax treatment. See our detailed article: Coop vs Condo: Legal Differences Explained.
In New York, it is standard practice for both buyers and sellers to have their own attorneys. While not legally required, having an experienced real estate attorney is essential for reviewing the contract, conducting due diligence, examining the building's financials, and protecting your interests at closing.
Key items include the reserve fund balance, any pending assessments, the building's insurance coverage, outstanding litigation, and the ratio of unsold sponsor units to owner-occupied units. A building with a healthy reserve fund and stable common charges is generally a good sign.
A special assessment is a one-time charge levied on all unit owners to cover unexpected or major expenses — such as a new roof, elevator replacement, or facade repair. Assessments can be significant, so it is important to review the building's capital improvement plans and reserve fund adequacy before purchasing.
Contact Huang & Associates, P.C. with any questions about purchasing a condominium in New York City.