When you buy a condo in Florida, you own your individual unit but also have what is known as an “undivided interest” in all the common areas, such as the pool, parking garage, tennis courts, etc. This means you share ownership in the common areas with the other condominium owners.
What owning a condo actually means
You are required to abide by the rules and regulations as established by the condo complex as one part of a community of condo owners. Most condo projects require you to be approved as an owner before closing.
Most condo complexes also assess monthly dues that include the overall maintenance of the complex.
When you sell your condo, you transfer ownership in the same way you would if you sold a house, by real estate deed.
How a co-op is different
The major difference between condos and co-ops is in the way the asset is owned. You do not “buy” a co-op; instead, you become a shareholder in the corporation that owns the entire co-op building. You do not own your co-op unit. When you purchase the shares you will be provided the exclusive use of a unit in the co-op. Therefore, there is no deed at closing, like a condo, but rather a share certificate and usually a proprietary lease.
Generally, you will have to be approved by a co-op board as a shareholder and must abide by the rules of the co-op board for as long as you are a shareholder. If you wish to sell your interest in the co-op, the buyer will typically have to go through this approval process, as well as paying monthly HOA dues for maintenance.
Both types of property may also carry restrictions against pets or renting out the property.