Jeanne M. Reardon

Ownership of condominiums has become one of the most popular forms of real estate ownership. Even in New York City, condominiums are becoming more popular as new residential buildings are constructed. Today, the vast majority of newly built New York City apartment buildings are condominiums. In general, condos offer greater flexibility, but are often priced higher than comparable coop apartments.

 

Buying a condo is much like buying a house. As with a house purchase, each individual condo unit has its own deed and its own tax bill. Each owner is responsible for real estate taxes, mortgage payments, and monthly common charges for maintenance of the common areas of the building. Your mortgage interest is tax deductible, and so are the real-estate taxes for your unit. You are also allowed a tax deduction for your share of real estate taxes on the common areas. A statement sent to you by the owners' association will inform you of the amount. The monthly maintenance fee is not tax deductible. Condominium buildings unlike coops do not have an underlying mortgage.

 

Each condo owner owns what is within the exterior walls of their units but not what is outside those walls. They also own a proportional share of what is known as the "common areas". Those areas include the outside walls, driveways and roads inside the condominium complex, as wells as garages or carports, and all of the land within the complex's boundaries, including the landscaping around each unit. If there is a pool, tennis court, or clubhouse, those, too, are held jointly by all the condo owners.

 

While most condos do require an application to be submitted to the condominium's Board of Managers, the application process is much simpler than the Board approval process for coops. Much less financial and personal information is required and an in-person interview is generally not required. It is almost unheard of to be rejected by most condo boards.