PLEASE NOTE: To protect your safety in response to the threat of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options. Learn more about Navigating COVID-19 here.
Burns & Hansen, P.A.
Call us today for a FREE initial discussion
A Full Service Twin Cities Law Firm
Navigating your legal issues can be
confusing and complicated.

Condos and co-ops and boards, oh my! p2

We are talking about the difference between condominiums and cooperatives. As we said in our last post, buying a condominium is very similar to buying a single-family house. There is a purchase agreement, a mortgage, a deed, property taxes -- all the trappings of owning real estate.

Condo owners also have a stake in the maintenance of the building and the grounds, expenses that are covered by the association fee. The fee is determined by how many shares a unit has in the association; the number of shares per unit is included in the declaration and bylaws, the founding documents of the condo association.

A share in a co-op is a different animal altogether. When you buy into a co-op, you are buying shares of the corporation that owns the co-op. You buy shares, not real estate. There is no deed, only a proprietary lease to the apartment, and instead of a mortgage you would take out a home loan. You have an association fee, but you do not pay property taxes.

The board of directors in a co-op has slightly different responsibilities from a condo board. A co-op board is still elected by shareholders and still manages the building's finances. The different that affects most buyers is that the co-op board has veto power over who can buy into the building.

When a shareholder puts his unit on the market, then, he is actually selling his shares in the co-op. The board can interview and run background and credit checks on the prospective buyer and, based on that information, reject the sale. At that point, the seller has to start over again.

Bankruptcy and foreclosure are also handled differently by co-ops and condos. Those, however, are subjects for another post.

No Comments

Leave a comment
Comment Information
  • Rated by Super Lawyers
  • TwinWest Chamber of Commerce
  • MSBA - Minnesota State Bar Association
  • BBB Accredited Business
  • Ramsey County
  • Hennepin County - Bar Association
  • ABA

How Can We Help You?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Pay Your Bill Online: It’s easy and secure with LawPay
Pay My Bill