Looking for a coop, condo, townhouse or a unit within a homeowners association? If so, it's a good idea to know the definitions of each.

For starters, a townhouse, unlike the other three terms, refers to a style of home, and not a type of management. Townhouse-style homes usually have two or more stories and are attached to other townhouses; they share walls with their neighbors, but are not stacked on top of each other.

It's possible for a coop, condo or homeowners association unit to be a townhouse. However, on Long Island, coops tend to be in buildings, said Dana Solow, a licensed associate broker who co- manages the Condo Group of Daniel Gale Sotheby's International Realty in Roslyn. Gated communities are mostly made up of condos or homeowners associations.

Condos are often found in buildings, as well, and homeowners association units can either be townhouse-style or freestanding. For instance, The Links, a homeowners association in North Hills, has a mix of attached and freestanding units.

There are some important differences between the management types as well. The major difference between a condo and a coop is that with a condo, you own the unit, whereas with a coop, you own shares in a corporation, said Elyse Mayer, a licensed sales associate with Prudential Douglas Elliman Real Estate in Syosset.

Condo owners receive a title to their unit, and also own a percentage of the common areas. With a coop, the corporation owns the structure and issues owners longterm proprietary leases, which allows them to live in their units. Condos are generally more desirable and more expensive than coops. With a homeowners association, residents own their units, but unlike a condo, they also own the front and back yards.

Then come the rules.

Some people have a negative connotation about coops because there are many more rules, Solow said. You need permission and you have to go before the coop board to buy, sell or rent your unit. With all three management types, residents likely will need board approval to make any alterations to the exterior of their units, such as the patio, deck or landscaping. According to Solow, condos may limit the amount of time that residents can rent their units. Coops are typically more restrictive regarding rentals; some do not allow them, while others may only allow them after the owner has lived there for a certain amount of time.

Want a dog? Or to blast the stereo? Both coops and condos generally have rules regarding noise, pets and other quality-of- life issues; homeowners associations tend to be less restrictive.

With a coop, property taxes are included in the monthly maintenance charges, which are partially tax-deductible. Maintenance fees also cover upkeep of common areas. Condo and homeowners association unit owners also pay common charges, but they pay their property taxes separately. Common charges typically go toward the upkeep of pools, tennis courts, security, landscaping, trash and snow removal. In coops and condos, maintenance of the outside of the units is included, but homeowners association unit owners are typically responsible for their own roofs, decks and siding. No matter what the management type, if the complex needs major renovations, unit owners or shareholders may be assessed, which means they will have to contribute a given amount for the capital improvements.

All three management types are run by a board of directors made up of unit owners or shareholders. Condos and coops typically use professional management companies, as well.

Finally, while coop and condo owners only need homeowners insurance that covers the inside of their unit, those who own in a homeowners association should purchase a regular policy that will cover them inside and out.

Copyright 2006 Dolan Media Newswires
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