How is ownership in a cooperative building structured?

In a cooperative building, the structure of ownership is based on the purchase of shares in a corporation that owns the property. When individuals buy into a cooperative, they are actually buying shares in a corporation that holds title to the entire building. This means that when a person purchases shares, they gain the right to occupy a specific unit in the building, but they do not own the unit in the traditional sense – as is the case in condominiums or single-family homes.

This system fosters a community living environment, where owners are also shareholders in the corporation. Decisions regarding the property, such as maintenance, policies, and financial management, are typically made collectively by the shareholders, often through a board of directors elected by the cooperative members.

In contrast, options that mention deeds or individual ownership refer to different types of real estate ownership structures, such as condominiums or single-family homes. Time shares also represent a different ownership structure entirely, where individuals purchase the right to use a unit for a specified period each year. Therefore, the nature of ownership in a cooperative distinctly revolves around shareholding rather than direct ownership of property.