According to Wikipedia, " A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise".

In fact 75% of Manhattan's residential/apartment inventory is Co-Op. Interesting to note, during 2008's Financial Crisis Manhattan property value never fully tanked like many other markets. In fact because of each building's scrutiny, and conservative application/approval process, many buildings operate as efficient financial entities.  If you're a buyer looking to own in a home that will be your primary residence, co-ops may be the perfect option for you!

A quick checklist of Co-op Characteristics;

• Must be owner occupied, no pied a tiers

• Board of Directors

• Buyer will still have to pass a formal board interview. Approval is based of of financial stability, character, and at times social profile/status.

• CPA Reference Letters, Personal References, cover letters, etc may be requested.

• Debt to Income Ratio: 20-30%

• Co-Ops have less leniency. Finances are scrutinized when applying for a co-op because the building is conservative in extending their risk to shaky buyers.

• 2 year of Liquid Assets in Manhattan-  ( Might be 1 year in liquid assets  in Brooklyn)

• 20% minimum down payment

• Board of Directors

• Monthly Maintenance

• Coop owners pay monthly maintenance to the building corporation for items such as the expenses of maintaining and operating the building property, property taxes and the underlying mortgage on the building (if any).

• Cheaper to Close