Ownership and estates
Cooperative
A corporation owns the building; residents own shares and a proprietary lease
In a co-op nobody owns real estate individually. The corporation holds title and each resident holds stock plus the right to occupy a particular unit. One blanket mortgage typically covers the whole building, which means one owner’s default can affect everyone.
How the exam asks about it
Because the shareholder owns personal property rather than real property, financing, transfer and taxation all work differently — and boards usually hold approval rights over a sale.
Related terms
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