A co-op is different than a condo in that with a co-op there is one deed for the entire property, and that deed is owned by a corporation. The shareholders of that corporation are only the occupants of the units in the building. When you buy a co-op, you are buying shares of stock in that corporation, and you usually get a proprietary lease, or leasehold interest in an apartment. In a condominium there is a deed for each unit, and you own a proportionate share of the entire building and grounds, or common elements.

Co-ops are more likely to have land leases, which mean that the developer retained ownership of the land and leased it to the corporation, usually for 99 years. If there is a land lease, each shareholder is responsible for payment of their share of the lease.

Co-ops are also more likely to not allow mortgages. If mortgages are allowed, co-ops are more difficult to finance than condominiums because lenders usually want to place a lien against your deed, which you don't have as a shareholder/tenant of a co-op. There are exceptions to this, but generally you will be required 20 put twenty to thirty percent of the purchase price down, and the interest rate is higher than conventional financing for condominiums.

Some advantages to co-ops are that they tend to be priced lower than a comparable condominium making them relative good values. In addition, because it was a form of ownership in south Florida that was common in the 1950's and '60's, they tend to be in good locations and smaller in scale than condominiums that were built in later decades.

When buying a co-op it is important to have an agent who understands them, who is aware of the financing possibilities, who can explain the co-operative form of ownership, and who can write a contract on one that is appropriate for this type of purchase.