Tenant-owners of co-op apartments own shares in the corporation, and this entitles them to a long-term proprietary lease. The corporation pays the total amount of the building's mortgage, real estate taxes, employee salaries, and other expenses for the upkeep of the building.
Purchasing in a co-op requires approval by the building’s Board of Directors. The board is elected by tenant-owners of the co-op and interviews all prospective owners. Co-op boards look for people who are financially qualified and will have no issue paying both the monthly maintenance fees and the mortgage to the bank.
A condominium apartment in Manhattan is real property. Buyers get a deed just as if they were buying a house. Since they are real property, there is a separate tax lot for each apartment. This means buyers pays their own real estate taxes for the property. Owners will also pay common charges on a monthly basis. Common charges are similar to maintenance fees in a cooperative.