Sartell Condos

There are significant differences between a condominium and a cooperative, but each is considered a common interest development or CID.  Cooperatives were in existence and common before the idea of a condominium was fully developed in the United States.

In a cooperative, the building(s) containing the residential units are actually owned by the cooperative housing corporation whereas in a condominium, each unit owner owns that particular unit in fee simple.  In short, when you buy into a cooperative you are simply buying stock in that non-profit corporation and receive the right to lease space whereas when you purchase a condominium, you are actually buying the unit and hold title to that property.  In addition, the buyer owns an undivided interest in the common elements such as the exterior walls, roof, pool and other recreational areas.  This is actually the key difference between a condo and a co-op; the effects of which are varied. Real property, for example, descends to your heirs while the co-op's tenant-stockholder's shares pass as personal property to your personal representative and may be subject to securities regulations. Generally, a condo is considered real property and a cooperative is considered intangible personal property.

Because condos are owned individually, they appear in the property tax rolls as separate entities and, accordingly, individual owners are taxed separately whereas in a co-op corporation owns the entire property so it appears on the tax rolls as a single piece of property. The corporation pays the property taxes and passes along the cost to the tenant-shareholders, usually as part of the monthly maintenance fee.

Generally speaking, there are two issues of financing when speaking about cooperatives. First, there is the underlying mortgage -- or blanket mortgage or master mortgage or corporate mortgage -- that funded either the original construction or the conversion of rental apartments to a co-op form of ownership. Payments on that mortgage are paid by the corporation and then are passed along in the monthly maintenance fee to the tenant-shareholders. Secondly, there is the matter of whether the tenant-shareholder had enough cash to buy into the building or if he/she had to borrow the money.  Because there is no fee simple ownership of the unit, it is sometimes difficult to obtain financing because the security for the loan is the resident's shares in the corporation as opposed to the deed or title. Many lenders will not lend money on a co-op at all. Consequently, most co-ops have relationships with a few "approved" lenders who will finance sales. But that means those lenders have an actual stake in the building and often demand that they have a voice in how the corporation is run. These lenders also generally offer far fewer mortgage options, normally require larger down payments and charge higher interest rates.  As a result, condominium status is highly preferred over cooperatives as they offer a broader scope of financing options at a market value interest rate and as such are more marketable for future resale.

Most co-op owners cannot get a home equity loan or line of credit and in a co-op each individual is dependent on the solvency of the entire project. If the corporation were to go bankrupt, all shareholders would feel the pinch. Individual condo owners are responsible only for mortgage debt and taxes solely on his property.

In the condo situation, each individual is able, easily, to deduct payments made for mortgage interest and property taxes if he resides in the unit and further deductions for such things as depreciation and maintenance if the condo is used as a rental property. The co-op tenant-shareholder can only easily deduct his proportionate share of the property taxes and interest on the underlying mortgage. If other monies were borrowed to finance the actual purchase of the tenant-shareholder rights, deductibility depends on several different factors and is not done as easily.

For the most part, condominium ownership has more advantages compared to its co-op counterpart.

As part of our conversion from co-op to condominium, the entire complex underwent a major reconstruction process to include all new, top-of-the-line Marvin windows, Hardy-plank siding, new architectural 30-year shingles, and other miscellaneous upgrades that the association deemed necessary.  As such, the Wedgewood Association has a new look and feel to it and we are very proud of where we are at today and are happy to actually offer something of value, such as actual title to each individual unit as well as many amenities that other condominiums in the area do not offer such as a heated pool and a private park-like courtyard that the owners can enjoy at their leisure. The monthly association dues cover the cost and maintenance of these items as well as the water, trash, heat, sewer, on-site resident manager, snow removal, grounds maintenance, professional management, insurance for the external components of the buildings, etc.  For a detailed list of the items as well as the Associations bylaws and floor plans, please feel free to download a copy of the PDF document below.  Thank you for the interest in Wedgewood and if you have any questions or would like to take a tour, please email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it If you are looking for a housing situation that allows you to more thoroughly enjoy your life by freeing up your time, we are confident that Wedgewood is the option you have been looking for.