What is the primary difference between a housing cooperative and a condominium?

The primary difference between a housing cooperative and a condominium lies in the form of ownership. In a condominium, individuals own their specific units outright and hold a share in the common areas of the property, which is typically outlined in a condominium declaration. This structure means each unit owner has direct ownership of their property, including the right to sell or lease it independently.

In contrast, a housing cooperative is a collective ownership arrangement where residents do not own their individual units directly. Instead, they own shares in a corporation that owns the building or property as a whole. Each resident is essentially a shareholder and has a right to occupy a specific unit, but their ownership is tied to their shares in the cooperative. This means decisions about the property and management are typically made collectively among the shareholders.

Other factors, such as the legal structure or payment methods, may vary between cooperatives and condominiums but do not capture the essence of ownership as thoroughly as the form of ownership does. The size of the property is irrelevant to identifying the fundamental distinction between these two types of housing arrangements.