I understand how buying a condo or a house works, but not a co-op? What does it mean that you are buying shares of the company instead? what happens at the end of your mortgage term?
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In a condo you own a deed to the your actual apartment and then have to work with the condo board to pay for all of the common areas and upkeep. But, you can sell the deed to the unit you own to anyone you want.
In a co-op you don’t own your unit. You own part of the company that owns the entire building. The mortgage that you take out pays for your share of that company. Once your mortgage is paid off you continue to own your share of the company. One big difference is that the co-op board can choose who you are allowed to sell your share of the company to. So, they get to interview any potential new neighbors and approve or reject them.
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