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In real estate we hear about co-ops and condos -- each one has its pros and cons depending on a buyer's needs, but there is also a third option, a grey area that blends together a little bit of both called a condo-op.

"By legal definition, a condo-op is a co-op building where the ground floor is structured as a condominium with either commercial or retail space so in a nutshell a condo-op is a co-op in a condo building. However, over the years brokers have adopted the term condo-op to describe any co-op building that has adopted condo bylaws," said Halstead Properties Senior Vice President Ivana Tagliamonte.

A condo-op has the same ownership structure as a co-op -- you own shares in the corporation, not the actual apartment, but the rules and regulations are more lax, like in a condo.

"A condo-op is an attractive purchase for people because they don't have to go through an intensive financial approval process the way they would if they were purchasing a co-op. There is very limited financial information that is required and they don't have to go in front of a board for an interview process," said Tagliamonte.

That also makes it easier to resell.

"You are able to lease your apartment out for as long as you want to whomever you want. Whereas in a co-op, in a traditional co-op -- they make it a lot more difficult to rent. They have a pre-formatted time frame of how long you can rent out and they're also subject to board approval," said Iman Bacodari of Prudential Douglas Elliman.

Condo-ops are priced like co-ops, which means they are generally less expensive than condominiums. Closing costs are also less.

"I had the benefit of being able to rent the space out while I had long journeys outside of the U.S. for my business. Another reason was basically I took advantage of having a live work environment which my co-op gives us that flexibility," said Eli Braha, a condo-op owner.

Braha also says his condo-op offers better tax deductions than a condo would.

Buying into a condo-op can be confusing because it has such a unique structure. So it's a good idea to find a broker and a lawyer who really understand how they work so they can help you navigate the process.