1. A buyer of a unit in a cooperative receives:
Answer & explanation
Answer: C. In a co-op the corporation owns the building; members own shares and a proprietary lease (personal property). Condominium owners receive a deed.
property
cooperative
A form of ownership in which a corporation owns the building and residents buy shares of stock in the corporation. Each shareholder receives a proprietary lease giving the right to occupy a specific unit. Because owners hold stock rather than real property, co-op interests are often treated as personal property. Boards usually must approve buyers, and all owners share the building's mortgage and expenses.
- Exam tip
- Co-op buyer gets shares plus a proprietary lease, not a deed. Condo buyer gets a deed to the unit plus an interest in common elements.
- Example
- A buyer purchases 500 shares in a co-op corporation and receives a proprietary lease for apartment 4B after board approval.
Related terms & state variants
Sources
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Last verified: 2026-10-23