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Co-ops and Condos in Honolulu

Condo vs. Co-op Ownership in Hawaii

Condominium Ownership: An estate in real property consisting of an individual interest in an apartment unit and an undivided common interest in the common areas such as the land. Each condominium unit is a statutory entity which may be mortgaged, taxed, sold or otherwise transferred in ownership, separately and independently of all other units in the structure.

Cooperative Ownership: Cooperative ownership of an apartment unit means that the apartment owner has purchased shares in a corporation which holds title to the entire apartment building. The cooperative owner is, in essence, a shareholder in a corporation whose principal asset is a building. In return for his stock in the corporation, the owner receives a proprietary lease entitling him to occupy a specific unit in the building. He thus occupies but does not own his unit. He must pay his prorated share of the corporation's expenses, which include mortgage charges, real estate taxes, maintenance, payroll and the like. The owner can deduct for tax purposes his share of the taxes and interest charged.

* The majority of Co-ops that are found on Oahu are either on the Gold Coast area of Diamond Head or in Waikiki and several were built prior to Hawaii Condominium Law that was established in 1961

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