In a cooperative, which form of ownership do residents typically hold?

In a cooperative, which form of ownership do residents typically hold?

• A. Fee simple interest in airspace
• B. Stock in the cooperative
• C. Freehold title to the apartment
• D. Direct ownership of the common areas

Answer: (B)

In a cooperative, residents don’t own their units outright; they own shares of the cooperative corporation that owns the building and receive a proprietary lease to occupy a specific unit. That share ownership is the form of ownership tied to like a long-term occupancy right, rather than a fee simple title to the unit. That’s why stock in the cooperative is the best answer: it represents ownership in the cooperative itself, not in the individual apartment. The other options don’t fit because a co-op does not grant fee simple interest in airspace (that’s typical of a condo), nor freehold title to the apartment, nor direct ownership of the common areas (those are owned by the cooperative corporation as a whole, not by individual residents).

In a cooperative, residents don’t own their units outright; they own shares of the cooperative corporation that owns the building and receive a proprietary lease to occupy a specific unit. That share ownership is the form of ownership tied to like a long-term occupancy right, rather than a fee simple title to the unit.

That’s why stock in the cooperative is the best answer: it represents ownership in the cooperative itself, not in the individual apartment. The other options don’t fit because a co-op does not grant fee simple interest in airspace (that’s typical of a condo), nor freehold title to the apartment, nor direct ownership of the common areas (those are owned by the cooperative corporation as a whole, not by individual residents).