Closings glossary
Common charges
The recurring charge a condominium levies on each unit for building operations and reserves. Real estate taxes are billed to the unit directly and are not part of the figure.
What are condo common charges?
Quick Answer
The full definition
The recurring charge a condominium levies on each unit for building operations and reserves. Real estate taxes are billed to the unit directly and are not part of the figure.
Which related terms should you know?
These are the terms that come up alongside common charges in the same file.
- Maintenance (co-op)
- The monthly charge a co-op levies on each shareholder, covering building operations plus that shareholder's share of real estate taxes and the underlying mortgage.
- Assessment (co-op or condo)
- A charge levied by a co-op or condominium board beyond ordinary maintenance or common charges, typically to pay for a capital project. It is disclosed in the managing agent's closing letter.
- Flip tax
- A transfer fee charged by a co-op or, less often, a condominium when a unit changes hands. It is a creature of the building's governing documents, not a government tax.
- Offering plan
- The sponsor's filed disclosure document for a co-op or condominium, carrying its budget, share or common interest allocation, building rules and sponsor commitments.
- Right of first refusal
- The right to match an offer before a sale closes. In condominiums it is exercised or waived by the board, and the written waiver is delivered at closing.
Where does common charges come up in a New York City closing?
A Long Island City condo quotes common charges of $1.10 per square foot plus a separate quarterly tax bill, which is why the co-op comparison confuses buyers.
What else should you read before closing?
Building types
- Standard condoA New York City condominium unit: real property conveyed by deed, recorded in ACRIS, with an undivided interest in the common elements.
- New-development condoA first sale from the sponsor of a newly built condominium, governed by an offering plan, often delivered on a temporary certificate of occupancy.
- CondopA building split into two condominium units, one commercial and one residential, where the residential unit is owned by a cooperative corporation.
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