What Is a Co-op in Real Estate?

A co-op (short for cooperative housing) is a type of real estate ownership where you purchase shares in a corporation that owns the entire property — rather than owning an individual unit outright. Your shares entitle you to occupy a specific apartment or home and follow the co-op’s rules and policies set by its board.

🏢 How a Co-op Works

In a co-op, you don’t receive a property deed like you would with a condo or townhouse. Instead, you own shares in the cooperative corporation that owns the building. Those shares correspond to your specific unit, and your right to live there is governed by a proprietary lease or occupancy agreement. Residents collectively make decisions through an elected co-op board that manages building operations, maintenance, and finances.

🏠 Co-op vs. Condo

  • Ownership: Co-op owners hold shares in a corporation; condo owners hold title to their individual unit.
  • Financing: Buying into a co-op often requires board approval and specialized financing.
  • Rules & Restrictions: Co-ops typically have stricter approval processes and resale policies.
  • Monthly Fees: Co-op fees often include property taxes and building maintenance combined into one payment.

✨ Pros and Cons of Co-op Ownership

Advantages: Co-ops are often more affordable than condos, offer a strong sense of community, and include many maintenance costs in monthly fees.

Drawbacks: They usually have stricter buyer approval, limited subletting options, and require board consent for most major decisions.

📢 Selling a Co-op FSBO

Selling a co-op as an owner (FSBO) involves more paperwork than a typical home sale but is completely possible. Your co-op board may require specific disclosures or approval of the buyer, but you can still list your co-op on the MLS to reach thousands of active buyers.

With Brokerless, sellers can list their co-op for one flat fee, gain Realtor.com and Zillow exposure, and save thousands in commissions while keeping full control of the process.