New York City operates under rules that do not apply elsewhere in the state, and the salesperson exam tests them. The co-op versus condominium distinction is the highest-value concept here: a co-op owner holds shares in a corporation and a proprietary lease, while a condo owner holds real property outright.
7 terms you need to know
- Abatement
- A reduction in something owed, such as a property tax abatement granted by a municipality. In NYC, the 421-a tax abatement reduces property taxes for new construction for a set period.
- Co-op (Cooperative)
- A form of multi-unit residential ownership common in NYC where the building is owned by a corporation and residents own shares plus a proprietary lease for their unit.
- Common Elements
- Areas of a condominium or co-op shared by all owners — hallways, roof, lobby, mechanicals. Maintenance is funded by common charges.
- Condominium
- A form of ownership where the owner holds fee simple title to a unit plus an undivided interest in the common elements.
- HOA (Homeowners Association)
- An organization that manages shared community amenities and enforces covenants in planned communities and condominiums.
- Multiple Dwelling Law
- NY statute (Multiple Dwelling Law §1 et seq.) regulating safety, sanitation, and habitability in residential buildings with three or more units.
- Rent Stabilization
- A NY system primarily affecting NYC and certain other localities, regulating rent increases and lease renewals for many older multi-unit buildings. Different from rent control, which is even more restrictive and rarer.
Commonly confused
Co-op vs condominium
A co-op buyer receives shares in a corporation plus a proprietary lease, which is personal property. A condominium buyer receives a deed to real property. This changes financing, board approval rights and how the interest is taxed and transferred.
Rent control vs rent stabilization
Rent control is the older, much smaller programme with strict tenancy-continuity requirements. Rent stabilization covers far more units and sets increases through the Rent Guidelines Board.
Common elements vs limited common elements
Common elements are shared by all unit owners, such as the lobby. Limited common elements serve one unit exclusively while remaining common property, such as a balcony or assigned parking space.
How this is tested
Keep studying
- Co-op vs Condo: What the NY Exam Tests
- NYC Sponsor Units Explained
- NYC Real Estate Exam Guide
- Full NY Real Estate Glossary — all 161 terms