Categories of Residential Property

A set of flashcards covering key concepts, definitions, and considerations related to various categories of residential and commercial properties.

What is a cooperative apartment (co-op)?

A type of residential property where residents own shares in a corporation that owns the building, rather than owning the property itself.

What are maintenance payments in a co-op?

Monthly fees paid by co-op shareholders to cover the building's operating expenses, including property taxes, mortgage payments, and maintenance of common areas.

What is a condominium (condo)?

A type of residential property where individuals own their own units and share ownership of common areas such as hallways, pools, and gyms.

What are common charges for a condominium?

Monthly fees paid by condo owners that cover maintenance of common areas, security, and amenities.

What is the business judgment rule?

A legal principle that protects the decisions made by the board of directors of a co-op or condo association, as long as those decisions are made in good faith and within the scope of their authority.