Condops are one of the most misunderstood designations in New York City real estate.
Agents will often define condops as co-ops with condo rules… but the truth is a bit more nuanced than that. The category of housing was created by owners and developers in the 1980s who wanted to get around a tax rule.
The owners of mixed-use co-op buildings with commercial space on the ground floor designated the commercial space as one condo unit. And the entire residential section of the building became considered another condo unit that was then divided into co-operative shares.
Condops unique structure makes them complex, often with multiple boards. The Condominium Board deals with issues pertaining to the general common elements such as exterior repairs, or major plumbing repairs. The Commercial Board govern issues covered to the commercial units.
A third board is elected by the co-op members and deals with shareholder issues regarding the residential space, like common hallways, or laundry rooms. Any prospective condop buyer should find out how well the boards function together and separately.