Buying a co-op or condo in New York City

This page gives general information, not legal, tax or financial advice. A New York attorney should review the specific building before you sign anything.

Co-op vs condo ownership in New York

A co-op buyer does not buy real estate in the ordinary sense. According to the Attorney General's co-op page, a buyer purchases shares in a corporation, the shares are allocated to a specific apartment and they carry a long-term proprietary lease. Maintenance is charged by the number of shares. The Attorney General's guide for co-op directors describes owners as both shareholders in and tenants of the same corporation, run by a board the shareholders elect.

A condo buyer owns the unit itself. The Attorney General's condo page describes separate ownership of the unit plus an undivided interest in the common elements, such as lobbies, roofs and mechanical systems. The state's Condominium Act, Article 9-B of the Real Property Law, governs how a building becomes a condominium and covers common charges, liens, by-laws, reserves, insurance and rentals.

Sources: NYS Attorney General, cooperatives; NYS Attorney General, condominiums; RPL 339-m.

For a broader comparison that includes townhouses and houses, see co-op, condo, townhouse or house.

What the building's documents control

Two apartments with the same layout can have very different rules, because each building writes its own. The Attorney General notes that a co-op's by-laws and proprietary lease set its terms, including the sublet provisions. Beyond that, these items are set building by building:

• Financial requirements. Boards look at a buyer's finances, and the standards differ per building. Ask what the board package requires before you make an offer.
• Flip tax. This is a transfer fee charged by the cooperative corporation on a sale of shares. It is not a government tax. State law, in Business Corporation Law section 501, allows such fees on a sale or transfer of shares. The amount and formula come from each building's own documents, with no fixed statewide rate.
• Sublets and rentals. Some buildings restrict them and some do not. If you may want to rent the apartment later, read this section first.
• Pets, renovations and house rules. All per building.

Ask the seller's side for the proprietary lease or declaration, the by-laws, the house rules, the current offering plan or its amendments, and recent financial statements. Read them before you spend money on an appraisal or a board package. Your attorney can then tell you what is unusual.

Co-op board approval and the "no reasons" question

A co-op purchase is a contract subject to board approval. You submit an application, usually called a board package, and the board decides. New York co-op boards are generally not required to give a reason for declining a buyer, so plan on the possibility of a decision without an explanation, and ask your attorney how this works for the building you are considering.

If you are selling a house to buy an apartment, compare the timing with buying first or selling first, and ask early how the building treats retirement income. Requirements are per building.

Anti-discrimination protections that apply to buyers

A board's freedom to decline for no stated reason does not include declining for a protected reason. The New York City Human Rights Law prohibits housing discrimination based on actual or perceived age and lawful source of income, among other characteristics, and the city's fair housing page states that co-op and condominium board members can be liable. The city's Fair Chance Housing Law, which addresses criminal history, also covers buyers, including in co-ops and condos.

If you believe you were treated unlawfully, the NYC Commission on Human Rights takes complaints at (212) 416-0197 or through nyc.gov/humanrights. The state's Human Rights Law and the federal Fair Housing Act also apply. What counts as discrimination in a particular rejection is a legal question for an attorney.

New York City's 2026 law on co-op application deadlines

New York City adopted a law in 2026, Local Law 58 of 2026, that sets deadlines for co-op boards to acknowledge and decide on purchase applications submitted on or after July 28, 2026, with fines enforced by the Department of Housing Preservation and Development, according to summaries by Goldberg Weprin Finkel Goldstein and Cozen O'Connor. It does not require a board to give reasons for a denial.

Smaller buildings may fall outside it. Whether it applies to your building, and what the deadlines are for your application, is a question for your attorney.

Condo right of first refusal under 13 NYCRR 20.3

Condo boards generally do not approve buyers the way co-op boards do, but some condos give the board a right of first refusal, which lets the board match a buyer's offer and buy the unit itself. Whether yours does is in the documents. The Attorney General's regulation on condo offering plans, 13 NYCRR 20.3, requires a plan to say whether the board has this right on sales or leases, and how many days the board has to notify the owner. It says the board may not discriminate on grounds including age, and where a condo board has no approval right, the plan must say the board does not have the right to approve or disapprove purchasers.

That copy of the regulation is marked as an unofficial version revised in April 2018, so ask your attorney to confirm the current text. The practical point is simple: a right of first refusal exists only if that condo's own documents provide one. Ask how long the board has to respond, since that affects your closing date.

Common charges, special assessments and condo liens

Condo owners pay common charges. Under RPL 339-m, each owner's share generally follows their common interest unless the declaration and by-laws allow otherwise. Section 339-v requires the by-laws to address how common charges are set and collected and to set up a board of managers.

The part buyers should know is the lien. Under RPL 339-z, the board has a lien on a unit for unpaid common charges. It ranks ahead of most other liens, though not tax liens or first mortgages. On a transfer, unpaid charges are paid from the sale proceeds or by the buyer, and buyer and seller can obtain a statement of unpaid charges. Ask for that statement early so nothing surprises you at closing.

The same Attorney General regulation requires offering plans to explain how common charges and assessments are set, and how reserves work. It sets no figures. Special assessments, reserve levels and any planned capital projects differ per building, so ask for the budget, the most recent financial statement and the board minutes about upcoming work. For co-ops, ask what the monthly maintenance includes and what is billed on top.

New York City also has a tax abatement for co-ops and condos, the Department of Finance co-op and condo abatement. The unit must be your primary residence and you may hold no more than three residential units in the development. Individual owners do not apply: the building's board applies for the whole development each year. Ask the managing agent whether it files. For other tax relief, see New York senior property tax exemptions.

Offering plans and the Attorney General

The Attorney General regulates public offerings of interests in co-ops, condos, homeowners associations, timeshares and senior residential communities under General Business Law Article 23-A and the regulations at 13 NYCRR Parts 20 to 25. Section 352-e requires an offering statement or prospectus to be filed with the Attorney General before a sale. Part 20 covers condos and Part 21 covers co-ops.

For a buyer, the offering plan is the building's disclosure document. The Attorney General's advice to buyers is to read the entire plan and consult an attorney before signing. Your attorney can obtain the plan and its amendments for the building.

What your attorney does, and what a broker cannot do

The New York City Bar says attorneys are used in a real estate transaction in most parts of New York. The State Bar explains that downstate the seller's attorney typically prepares the contract, and that buyers and sellers need an attorney to explain it (NYSBA). For a co-op or condo, your attorney reads the offering plan and building documents, reviews the contract and board rules, and can tell you what to ask about the building's finances.

A real estate agent cannot fill that role. The Department of State has told brokers and salespersons to refrain from providing legal advice to their clients. When you ask for an introduction through New York Downsizing, the agent you meet is on the operating team at eXp Realty, so this is not a search of the whole market. Plan on hiring your own attorney either way. See the resources page for where to find one.

Co-op and condo insurance

The state Department of Financial Services explains the split in its homeowner and tenant guide (2020 edition):

• Condo unit owners typically carry an HO-6 policy. It generally covers contents and property inside the unit, such as alterations, appliances, fixtures, improvements and interior walls. The building and common areas are typically insured under the association's policy. Loss assessment coverage addresses certain assessments the association may make after a covered loss.
• Co-op shareholders carry a policy, often called HO-4 or a tenant policy, covering contents and personal liability. Insurance on the building is usually the building owner's responsibility.
• Flood is excluded from standard homeowner and unit policies and needs a separate National Flood Insurance Program policy. See flood and storm insurance when downsizing.

DFS suggests comparing your own coverage with the association's. What a given building's policy covers is not something we can say. Ask for the certificate of insurance and a summary from the managing agent, and give both to your insurance agent before closing.

The mansion tax and other buyer costs

New York State's additional tax under Tax Law section 1402-a is 1 percent of the consideration attributable to residential property when the entire conveyance is $1,000,000 or more. It applies to a co-op apartment, an individual condo unit and a one to three family house. The grantee, meaning the buyer, pays it. It is charged on the whole price once the threshold is met, not just on the amount above $1,000,000.

New York City adds a supplemental residential tax under section 1402-b, also paid by the buyer. It starts at 0.25 percent for sales from $2,000,000 to under $3,000,000, and steps up in higher price bands. The Department of Taxation and Finance's TP-584-NYC instructions (8/25) have the rate chart. Ask your attorney or title company to confirm the rates that apply on your closing date.

Other buyer costs depend on the sale. The Department of Financial Services says the home buyer is generally responsible for paying for both title insurance policies, the owner's and the lender's, though the contract can change that. Co-op buyers should also ask what the building charges at closing. Those fees are per building. To see how a purchase fits with a sale, use the net proceeds calculator and the costs and money page.

Next steps

Decide first whether a co-op, a condo or a house suits how you want to live, then look at buildings in the neighborhoods we cover. The step-by-step downsizing guide puts these choices in order. When you are ready to talk to someone, you can ask to be introduced to an agent on the eXp Realty operating team.