Property types — 6 min read
Condo and co-op closings: what changes for title
A condo is real property with a deed; a co-op is shares in a corporation. That distinction changes the entire closing.
Condominiums
You take a deed to a defined unit plus an undivided interest in common elements, so a standard title search and owner's policy apply. Additional review covers the declaration and bylaws, any right of first refusal, and unpaid common charges, which can become a lien.
Cooperatives
A co-op purchase transfers stock and a proprietary lease, not real estate. Traditional title insurance does not apply; instead the search focuses on UCC filings against the shares, the corporation's own liens and the transfer agent's records. Some buyers obtain a co-op leasehold policy where available.
Documents that drive the timeline
- Estoppel or dues certificate confirming current charges and assessments
- Board approval or waiver of right of first refusal
- Insurance certificate meeting lender requirements
- Special assessment history and reserve information
- Recognition agreement, on financed co-op purchases
Where files stall
Board scheduling and management-company turnaround are the usual bottlenecks. Request association documents at contract, not after mortgage commitment.
Questions
Good to know.
Standard owner's policies do not apply to shares, but lien and UCC searches are essential, and leasehold coverage may be available depending on the transaction.
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