Most apartments for sale in New York City are either condos or co-ops. From the hallway they can look the same, but you own them differently, finance them differently and pay different closing costs. Below is how they compare, with the same $1,000,000 apartment run through the NYC Real Estate Calculator both ways.

 

At a Glance

 

• What you own. Condo: the apartment itself, with a deed. Co-op: shares in the corporation that owns the building, plus a proprietary lease for your apartment.

• Approval. Condo: the board usually has a right of first refusal, which is rarely used. Co-op: the board reviews a full application package and interviews you, and it can decline.

• Down payment. Condo: often 10% or more, set by your lender. Co-op: commonly 20% to 25%, and some buildings ask for 30% to 50% or all cash.

• Closing costs when financing. Condo: often 3% to 5% of the price. Co-op: often 1% to 2.5%.

• Monthly costs. Condo: common charges plus property taxes, billed separately. Co-op: one maintenance payment that includes your share of the building's taxes and mortgage.

• Renting it out. Condo: usually allowed, often with a minimum lease term. Co-op: limited, and each sublet needs board approval.

• Price. Co-ops usually cost less for the same space. The median Manhattan co-op sells for roughly half the median condo price.

 

What You Own

 

When you buy a condo, you receive a deed to your apartment and a share of the common areas, the same way you would own a house. You can finance it with a regular mortgage, and your lender records it with the city.

 

When you buy a co-op, you buy shares in a cooperative corporation. The shares come with a proprietary lease that gives you the right to live in your apartment. Your loan is a share loan, secured by the shares and the lease rather than by real property. That one difference explains most of the other differences below, including the lower closing costs.

 

Board Approval and Timeline

 

Condo. After your contract is signed, the condo board gets notice of the sale and a chance to buy the apartment on the same terms (the right of first refusal). Boards almost always waive it. You submit a shorter application with references and financial information.

 

Co-op. The board reviews your finances, tax returns, references and letters, then usually meets you for an interview. In most cases a co-op board can decline a buyer without giving a reason, as long as the decision does not violate fair housing laws. Board approval usually adds several weeks to the process, and your contract normally lets you cancel and get your deposit back if the board says no.

 

Many co-ops also have house rules on who can buy: some don't allow buying for a child or a relative, some limit guarantors and co-purchasers, and many don't allow purchases through an LLC or a trust. Condos are usually more flexible on all of these.

 

How Much Cash You Need: A $1,000,000 Example

 

Here is the same $1,000,000 apartment as a condo and as a co-op, with 20% down and a 30-year loan at 7.25%. The condo has $1,100 in monthly common charges and $1,000 in property taxes. The co-op has $2,100 in monthly maintenance, which includes its share of the building's taxes. Insurance is $100 a month for both.

 

Monthly cost: the same. Principal and interest is $5,457, so both total $7,657 a month.

 

Closing costs: the co-op costs approximately half as much.

 

• Condo: $45,016 (4.50% of the price). This includes the $10,000 mansion tax, the $15,400 mortgage recording tax, title insurance of $3,832 (owner's policy) and $884 (lender's policy), a title search, deed recording, building fees, a two-month common charge adjustment and three months of property taxes for the lender's escrow.

• Co-op: $23,450 (2.34% of the price). The $10,000 mansion tax still applies. There is no mortgage recording tax and no title insurance. Instead there is a $500 lien search and a $400 recognition agreement and UCC-1 filing for the lender.

 

Cash at closing. Down payment plus closing costs: $245,016 for the condo and $223,450 for the co-op.

 

What the co-op board will also look for.

 

• Post-closing liquidity. Many co-ops want 12 to 24 months of housing costs left in the bank after closing. At 24 months, that is $183,778 on top of the $223,450, so you would show approximately $407,228 in total.

• Debt-to-income. Many boards want your housing costs to stay at or below 25% to 30% of your income. At 25%, this apartment points to an income of approximately $367,556 a year.

 

A condo lender also checks your income and reserves, but the bank's rules are usually easier to meet than a co-op board's.

 

Run your own numbers for a condo or for a co-op.

 

Monthly Costs and Taxes

 

Condo. You pay common charges to the building and property taxes to the city, separately. Some newer condos have a tax abatement that phases out over a set schedule, so check when it ends.

 

Co-op. You pay one maintenance charge. It covers the building's staff and upkeep, its property taxes and its underlying mortgage, if it has one. A building with a large mortgage can have higher maintenance and more exposure when that mortgage is refinanced, so it is worth reading the financial statements.

 

Tax deductions. As a condo owner you can deduct your mortgage interest and property taxes if you itemize. As a co-op shareholder you can deduct your share loan interest plus the part of your maintenance that goes to the building's real estate taxes and mortgage interest. The co-op reports that part to you each year; it is often around 60% of maintenance, but it varies by building. Property taxes count toward the state and local tax (SALT) deduction cap of $40,400 for 2026. Review your situation with your CPA.

 

Both condos and co-ops can charge assessments for major projects. Check the board minutes and reserve fund before you sign.

 

Living There: Subletting, Renovations and Second Homes

 

Renting it out. Most condos allow you to rent your apartment, often with a minimum lease term of one year and a short application for the tenant. Co-ops limit subletting: many require you to live there for a year or two first, cap how long you can sublet, charge a sublet fee and approve each subtenant. If you may rent the apartment later, a condo gives you more room.

 

Renovations. Both require an alteration agreement for anything beyond cosmetic work. Co-ops are usually stricter regarding plans, insurance, work hours and timing.

 

Second homes and pieds-à-terre. Condos usually allow them. Many co-ops don't, or require the apartment to be your primary residence. Either one may be subject to the city's new annual surcharge on non-primary residences if the city values it at $1 million or more. See if the pied-à-terre tax applies to you.

 

Selling

 

Sellers of both pay the NYC and NYS transfer taxes and a brokerage commission. Co-op sellers may also owe a flip tax set by the building, often 1% to 3% of the price, and the buyer still has to pass the board. Some condos charge a transfer fee instead, usually smaller. Estimate your net proceeds.

 

Which One Fits You?

 

A condo usually fits if you:

 

• Want to rent the apartment out now or later, or use it as a second home

• Are putting down less than 20%

• Are buying from abroad, through an LLC or a trust, or for a family member

• Value a faster, more predictable approval

 

A co-op usually fits if you:

 

• Will live in the apartment as your primary home

• Have strong income and savings after closing

• Want more space for the price and lower closing costs

• Prefer an owner-occupied building with stricter rules on who moves in

 

Frequently Asked Questions

 

Are co-ops cheaper than condos in NYC?

Usually, yes. Co-ops often sell for less per square foot than comparable condos, and the closing costs are lower because there is no mortgage recording tax or title insurance. Monthly maintenance can be higher than common charges, but remember that it already includes property taxes.

 

Do co-op buyers pay the mansion tax?

Yes. The New York State mansion tax applies to condos, co-ops and one- to three-family homes at $1,000,000 and up. It starts at 1% of the full price.

 

Can I buy a co-op with less than 20% down?

Some co-ops allow 10% to 15% down, but most ask for at least 20%, and many ask for more. The building's financing rules are in the purchase application or listing details, so check them before you make an offer.

 

Can a co-op board reject me without a reason?

In most cases, yes, as long as the decision does not violate federal, state or city fair housing laws. A complete, well-organized board package and a realistic view of the building's financial requirements are the best way to avoid surprises.

 

Is co-op maintenance tax deductible?

Partly. The part that pays the building's real estate taxes and mortgage interest is deductible if you itemize. Your co-op sends the figures each year.

 

What is a condop?

A condop is a building split into condo units, usually with the residential part held as one unit that is run as a co-op. The residential side is a co-op, but its rules are often closer to a condo's, for example on subletting and buying through an LLC. Read the bylaws and house rules for the specific building.

 

Run Your Numbers

 

Use the NYC Real Estate Calculator to compare a condo and a co-op at your price, or read the NYC Home Buyer's Guide for the full buying process. Buying in a new building? See Resale vs Sponsor Sale.

 

Estimates for planning only. Confirm figures for a specific building with your attorney, lender and CPA.