Property Management
In New York, a 'common charge' in a condominium is analogous to a co-op's 'maintenance' in that both:
AInclude the building's underlying mortgage
BCover shared costs of operating and maintaining the common elements and building infrastructure✓ Correct
CAre tax-deductible for all unit owners
DAre set by the DHCR
Explanation
Common charges (condos) and maintenance fees (co-ops) both cover the shared operating expenses of the building, including staff, insurance, utilities for common areas, and reserves for capital improvements. The key difference is that co-op maintenance also includes the building's underlying mortgage and property taxes.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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