Board of Managers vs Board of Directors
A Board of Managers governs a condominium under the Condo Act; a Board of Directors governs a cooperative corporation under the Business Corporation Law. The structures look similar from the outside but differ in legal authority, fiduciary standard, and the documents that constrain them.
Frequently asked questions
Can a condo board reject a buyer?
Almost never directly. The board has a right of first refusal — it can match the offer and buy the unit itself, with appropriate corporate authorization — but it cannot simply veto. In practice, ROFR is exercised perhaps once per decade per building. Co-op boards, by contrast, approve or deny every transfer.
Do condo unit owners or co-op shareholders own real property?
Condo unit owners own real property — a deeded interest in their unit plus an undivided interest in common elements. Co-op shareholders own shares of stock in a corporation plus a proprietary lease on a specific apartment; they hold personal property, not real estate. This drives major tax, financing, and estate-planning differences.
How is voting structured?
Condo: typically one vote per unit, or weighted by percentage of common interest, per the declaration. Co-op: weighted by shares allocated to each unit in the offering plan, which generally correlate to size and floor but were set at conversion and don't move. A combined vote of every unit/share is needed for major actions in both.
Are flip taxes treated the same?
No. Co-op flip taxes (technically transfer fees) are common and enforced through the share transfer process. Condo flip taxes are rare and require explicit authority in the declaration — they cannot be added by board resolution alone. See the <a href="/glossary/flip-tax">flip tax</a> entry for the full mechanics.