DIFFERENCES BETWEEN CONDO OR CO-OP IN VENICE FL
The Venice FL area, especially Venice Island, has a mix of condo and co-op buildings.
WHAT IS A CO-OP?
VENICE FL CO-OPS
With a co-op, you do not actually own the unit. All units are owned by a corporation that owns the buildings and grounds. This corporation either issues you shares of stock in return for your use of the unit, or you are issued a proprietary lease. In the case of a proprietary lease, you are technically a tenant, where the lease spells out rules and regulations for the use of the unit.
One of the biggest differences in purchasing a co-op is that you may have to be approved by a committee of current owners, based mostly on your financial ability to own. Financing a co-op has become easier in recent years, with banks issuing "share loan" mortgages.
Like a condo, co-ops are managed by a central authority (the corporation) which has the responsibility of property maintenance and day to day operations. Meetings are held where owners can vote on issues such as assessments for major property upgrades.
Ownership in a co-op is generally treated similarly to condo ownership from a tax standpoint. If you took out a mortage to buy your share of stock in the co-op, that mortgage interest may be deducted from federal taxes. I advise you to consult with your tax professional to get a full picture of how co-op ownership may affect you.
WHAT IS A CONDO?
Most buyers are more familiar with condo ownership than co-ops. With a condo, you own your unit and belong to an association. It manages day to day operation as well as maintenance of major building systems such as roofs, windows, and community pools.
Condo association approval usually involves a background check and an application fee, most times performed by an outside management company.
Different types of condos may have different ownership responsibilities. For example, villas and townhome style properties may be managed as condos. Villa and townhome owners may own the ground the villa sits on, and may be responsible for roofs, windows, and pest control. Traditional condo owners are usually responsible for anything inside the studs of the individual condo unit.