Difference of Condo vs Co-Op

As it relates to real estate, a “co-op” is a stock corporation where owners hold shares of the corporation which in turn owns the building. Each shareholder owns shares equal to the value of a given unit. These shares come with usage rights to that unit. As such the main difference between a condo and a co-op is that a condo owner owns the individual unit while a co-op shareholder owns shares in a parent corporation which owns the individual unit. Both condos and co-ops are restricted by similar rules governing conversion. That is, it is equally difficult for an apartment building to convert to a co-op as it is a condo.