What’s the Difference between Houses, Mobile Homes, and Co-ops?

Posted: Sep 20, 2012
Author: 1st Choice Home Centers

The spectrum of real estate is huge and, as such, you could be very confused if you are in the market to buy a home. Let’s take a look at three non-rental home options and explain the differences between them: (a) houses, (b) mobile homes and (c) cooperatives.

HOUSES

When talking about a house, reference is being made to a single-family, free-standing dwelling. Apart from it being free-standing, the defining characteristic of a house is the extent of ownership responsibility taken by the purchaser. The buyer of a house owns the land, the building itself, and is responsible for the upkeep of everything within those areas, including repairs, painting, landscape and lawn maintenance, and real estate taxes.

MOBILE HOMES

The main defining characteristic of mobile homes is obvious – they are mobile. Sometimes, mobile homes are referred to as manufactured homes. When you buy a mobile home, it’s like buying a car – you receive a title of ownership, and sales tax applies. If mobile homes are used on the road, the law views them as vehicles. However, when mobile homes are settled in mobile home parks, they are viewed as houses.

COOPERATIVES

If you own a cooperative, you don’t own the actual unit. You own a share in the co-op corporation. This gives you the sole right to live in your unit, but you are not given ownership. Because of this, your real estate taxes might be covered by the cooperative membership because the building is taxed as a single entity.