A Cooperative (Co-op) is aform of real estate ownership where the homeowner purchases a share in the corporation that owns the property. Ownership of the share entitles the owner to exclusive rights to occupy their unit,though they do not actually own the space.
People also ask
What is a co-op in real estate?
What is a cooperative in real estate? With a cooperative, or co-op, a buyer buys shares in a corporation that owns an apartment building. In exchange, the buyer receives the right to live in a specific unit.
What is a housing cooperative?
A housing cooperative (or co-op) is the legal term for a housing unit that is owned and controlled jointly by a group of individuals who have equal shares, membership, and/or occupancy rights to the housing community.
What are co-operatives?
Cooperatives are formed on the principle of participatory governance, and its structure encourages the sharing of resources among members and a democratic style of management. A cooperative is a member-owned entity that is formed to meet the social, economic, and cultural needs of the members.
What does it mean to own the share of a co-op?
Ownership of the share entitles the owner to exclusive rights to occupy their unit, though they do not actually own the space. Cooperatives are run very similarly to condominiums, but financing is more restrictive since fewer banks offer mortgages for cooperatives. Thank You.