Heard the term “condop” while touring in Greenwich Village and wondered what it really means for you as a buyer? You are not alone. The Village has a unique mix of prewar buildings, ground-floor retail, and layered ownership structures that can be confusing at first glance. This guide breaks down how condops work, how they differ from condos and co-ops, and what to watch for in the Village so you can move forward with clarity. Let’s dive in.
What is a condop?
A condop is New York City shorthand for a building that blends condominium and cooperative features. It is not a separate legal form. In most cases, the building is a condominium, and the residential portion is a single condo unit owned by a cooperative corporation. You, as a buyer, purchase co-op shares tied to a proprietary lease within that residential co-op unit. The commercial spaces, such as retail or offices, are separate condo units.
This setup gives owners flexibility in mixed-use buildings and lets residential and commercial areas run under different rules. To confirm the structure in any building, review the condominium declaration and map, the offering plan and amendments, and the co-op’s proprietary lease, bylaws, and house rules.
How condops compare
Ownership and governance
- Condos: You receive a deed to your unit. Governance is by a condo board.
- Co-ops: You buy shares and receive a proprietary lease. Governance is by a co-op board.
- Condops: It depends on the internal setup. If the residential portion is a co-op, you buy shares and follow co-op-style rules. If the residential portion is deeded as individual condo units, condo rules apply. Always confirm by reading the offering documents.
Approvals and interviews
- Condos often require a basic application and financial review. Interviews are less common.
- Co-ops typically require a full board package and an interview, and boards can reject buyers.
- Many condops function like co-ops for residential owners, with board approval and interviews.
Subletting and occupancy
- Condos usually allow more flexible subletting, subject to bylaws and fees.
- Co-ops often restrict subletting by length, frequency, and approval requirements.
- Condops follow the governing documents. Many mirror co-op limits. Short-term rentals are commonly restricted in these buildings.
Financing basics
- Condos use a conventional mortgage recorded against your deed.
- Co-ops use a share loan secured by your shares and proprietary lease.
- Condops are financed according to the actual form of the residential interest. If it is co-op shares, lenders underwrite as a co-op loan. Some lenders have added requirements for condops, and not all lenders finance them. Work with a lender experienced in NYC condop and co-op loans.
Down payment norms often track the structure. Co-op-style condops frequently require higher down payments, often 20 to 25 percent, though this varies by lender, borrower, and building. FHA and VA loans have stricter criteria for co-ops, so many condops with co-op residential units are not eligible. Confirm early if you need these programs.
Fees and taxes
Monthly costs can be called maintenance (in a co-op) or common charges and taxes (in a condo). In condops, the split depends on the condo declaration and co-op accounting. Co-op shareholders may receive tax benefits differently than condo owners. It is wise to ask a CPA how these structures affect your tax planning.
Resale factors
Condos usually appeal to a broader audience because of easier financing and fewer approval hurdles. Co-ops and many condops can narrow the buyer pool due to board approvals and subletting rules. Flip taxes and transfer fees vary widely and may be hybrid in condops. Review the bylaws and proprietary lease to understand your costs at resale.
Village factors to weigh
Greenwich Village’s character shapes how condops operate.
- Mixed-use buildings: Many Village properties have ground-floor retail with apartments above. A condop allows the retail unit to be separately owned and managed from the residential co-op unit. Expect potential impacts from deliveries, odors, or noise. Review any commercial leases to understand tenant use and hours.
- Landmark rules: Large parts of the Village fall under Landmarks Preservation Commission oversight. Exterior work like façade or roof projects can require approvals, which may add time and cost. Ask about pending or recent façade work and how costs are allocated.
- Student and short-term demand: Proximity to major institutions can increase rental interest, yet many co-op-style condops heavily restrict subletting and prohibit short-term rentals. If you plan to rent, study the proprietary lease and house rules closely.
Key buyer decisions
Before you write an offer, get clear on your priorities:
- Are you buying to occupy or invest? Many condops favor owner-occupants through board discretion and sublet limits.
- Do you need flexible financing? If you require lower down payments or FHA/VA programs, confirm eligibility at the outset.
- How important is the ability to sublet? Check caps, minimum terms, seasoning requirements, and board approval steps.
- How comfortable are you with board oversight? Expect co-op-style packages and interviews in many buildings.
- How sensitive are you to assessments? Landmark work and commercial tenant projects can affect budgets.
Due diligence checklist
Documents to review
- Condominium declaration, map, and amendments
- Offering plan and any amendments
- Co-op certificate of incorporation, bylaws, proprietary lease, house rules
- Latest audited or reviewed financial statements and the current budget
- Board minutes, if available, for policy trends, litigation, or assessments
- Building master insurance policy
- Commercial leases for retail or office units, including use clauses and term dates
- Any underlying mortgages that could affect transfers
- Flip tax and transfer fee schedule and formulas
- Certificate of Occupancy and Department of Buildings violation history
Financial and operations
- Maintenance or common charge breakdown and included utilities
- Whether real estate taxes are included in maintenance or billed separately
- Reserve fund strength and planned capital projects, including facade or roof work
- Renovation policies and whether an alteration agreement is required
Financing steps
- Pre-approval from a lender experienced with NYC condops and co-ops
- Confirmation of down payment minimums and required board package items
- FHA or VA eligibility check if relevant
Inspections and checks
- Assess noise, light, and odor conditions, especially near restaurants and bars
- Ask about basement mechanicals, trash handling, and delivery schedules
- Confirm landmark status and any LPC applications or approvals
- Consider proximity to major institutions and how that affects building policies
Your team
- Retain a real estate attorney with NYC co-op, condo, and condop experience
- Work with a broker who knows Village condops and lender preferences
- Consult a CPA on tax treatment of share ownership versus deeded ownership
- If you plan renovations, speak with an architect familiar with LPC requirements
Financing and timing
Expect a co-op-style process if the residential portion is a co-op unit. Your lender will underwrite a share loan and request detailed building documents. Down payment expectations often align with co-op norms, though specifics vary by lender and building. If the residential interest is deeded as a condo unit, financing can look like a typical condo mortgage.
Board approval timing can range from a few weeks to a few months. The quality and completeness of your package matter. Prepare early, follow the building’s checklist, and respond quickly to questions. Condos usually move faster, while co-op-like condops follow co-op timelines.
How to navigate
- Clarify your goals. Decide whether owner-occupancy, rental flexibility, or renovation freedom is most important.
- Secure the right lender. Choose one that regularly finances NYC condops and co-ops.
- Tour with context. Listen for street and mechanical noise, check for cooking odors, and review lobby and elevator traffic tied to retail.
- Make a strategic offer. Consider sublet rules, flip taxes, and any pending assessments when shaping price and terms.
- Start legal review early. Have your attorney read the condo declaration, offering plan, proprietary lease, bylaws, and house rules before you sign a contract.
- Assemble a strong board package. Present clear financials, references, and a concise cover letter. Be interview-ready if required.
- Plan for closing. Coordinate lender, attorney, and managing agent timelines so you can close smoothly once approved.
Is a condop right for you?
A condop can be an excellent fit if you value the character of the Village, the order of co-op-style governance, and the stability that often comes with owner-occupant buildings. It may be less ideal if you need maximum subletting flexibility or specialized financing. The key is aligning the building’s rules with your goals, then confirming the details in writing.
If you want a seasoned, low-drama path to a great Village home, the right team makes all the difference. For senior-level guidance, curated options, and a streamlined process from first tour to board approval, connect with The Anderson Ehrmann Team. We offer discreet, high-touch buyer representation backed by deep experience in mixed-use buildings and condops.
FAQs
What is a condop in NYC?
- A condop is a condominium structure where the residential portion is often owned and run as a co-op, so many day-to-day rules and approvals resemble a co-op.
Will I receive a deed in a condop?
- You receive a deed only if the residential unit is deeded as a condo; if it is a co-op unit, you receive shares and a proprietary lease instead of a deed.
How does financing work for condops?
- Lenders treat the purchase according to its legal form, using share loans for co-op interests and standard mortgages for condo units; work with a lender experienced in NYC condops.
Are condops harder to resell than condos?
- They can be if co-op-style rules limit the buyer pool through approvals and sublet restrictions, though liberal buildings may have fewer resale challenges.
Can I do short-term rentals in a condop?
- Most co-op-like condops prohibit short-term rentals; always confirm the proprietary lease, house rules, and local regulations.
How long does board approval take in a condop?
- Timelines are similar to co-ops, typically ranging from a few weeks to a few months depending on the board package and interview process.
Are condops eligible for FHA or VA loans?
- Many condops with co-op residential units are not FHA or VA eligible; confirm early with your lender if these programs matter to you.
