Co-op
A cooperative building is owned by a corporation comprised of tenant shareholders or unit owners.  Each tenant shareholder owns a number of shares in the corporation. The number of shares depends on the unique characteristices of the apartment, such as size, view and location. The tenant shareholder's right to occupy the apartment as his or her home is granted by a proprietary lease to that apartment which is transferred, at closing, with the stock certificate. In New York City, co-ops are the norm. Approximately 85% of the apartments available for purchase are in cooperative buildings, and 15% are in condominiums. Since there is a larger inventory to choose from, co-op prices are in general, less expensive.  

Unit & Building Ownership
Co-op owners do not own real estate. Rather, each unit  owner owns shares in a corporation. The corporation, in turn, owns the building, including the apartment and usually, the land. 

Monthly Payments & Tax Deductibility
A co-op unit owner pays monthly maintenance which includes the unit’s proportionate share of (i) general building maintenance (i.e. staff salaries, fuel, water, etc.), (ii) corporation’s real estate taxes and (iii) mortgage interest on the building’s mortgage. Shareholders can deduct the portion of maintenance constituting (i) the building’s real estate taxes and (ii) the interest on the building’s mortgage.

Flip Tax
Many co-ops leve a transfer or "flip" tax on a seller.  This may be based on either the number of shares owned, the net/gross profit on the sale or the sales price.

Condominium
A condominium or condo is defined as "real property". The owner obtains a deed and a distinct tax lot number. Owners pay their own property taxes and a monthly common charge to the condominium. Common charges do not include (i) real estate taxes, as taxes are paid by each unit owner or (ii) building mortgage interest, as condos generally do not have a mortgage. In New York City, condos are the exception. Approximately 15% of the apartments available for purchase are in condominium buildings, and 85% are in cooperative buildings. Since there is a smaller inventory, condo prices are, in general, more expensive and have substantially higher closing costs.

Unit & Building Ownership
A condo is defined as "real property". The owner obtains a deed and a distinct tax lot number. The unit owner owns the real estate the unit occupies and an undivided interest in the building’s common areas, such as the lobby and hallways.

Monthly Payments & Tax Deductibility
A condo unit owner pays monthly common charges which includes the unit’s proportionate share of cost of upkeep of the building and common areas. As common charges do not include real estate taxes, as they are paid directly by each unit owner, or building mortgage interest, as there is no underlying condominium building loan, common charges do not offer any tax deduction. Real estate taxes, which are separately assessed for each unit, are tax deductible.

Flip Tax
Flip taxes are seldom associated with condominium sales.

Seller's and Buyer's Closing Cost                   
Seller's Closing Cost
Purchaser's Closing Cost
Co-ops-vs-Condos
1031 Exchange 2008