Property OwnershipIntermediateAlabama Exam

In a cooperative (co-op) ownership arrangement, the resident:

AOwns their unit in fee simple
BOwns stock in the cooperative corporation and holds a proprietary lease on their unitCorrect
CRents on a month-to-month basis only, though outcomes can differ depending on circumstances
DHolds a life estate in their unit

Why Owns stock in the cooperative corporation and holds a proprietary lease on their unit Is Correct

Answer B: Owns stock in the cooperative corporation and holds a proprietary lease on their unit

In a cooperative, residents do not own real property — they own shares of stock in the corporation that owns the building, and they receive a proprietary lease giving them the right to occupy their unit.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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