With this agreement, the owner agrees to the cooperative's bylaws and to pay a monthly fee toward the operation and maintenance of the building. Purchasers are more often familiar with condominiums, which have succeeded in both urban and suburban centers. The condominium concept, brought to DC in 1963, was legislated. A condominium can generally be defined as a fee simple ownership of a specific part of a property and an undivided interest in the common areas of the property. Legislation was necessary to define this combination of specific ownership combined with a general interest in real property.
Daily operation is very similar for both co-ops and condos.
This board manages the affairs of the corporation and may retain a professional management company if permitted under the co-op's established bylaws. The board approval process is perhaps the most significant operational difference between co-ops and other forms of ownership. Today, the process should be to educate the intended purchaser about the responsibilities of cooperative ownership and to review the application package. This application package can be quite detailed and typically includes financial information and letters of reference. Anonymity in a cooperative, therefore, is more difficult than with the purchase of a house or condo.