Property Ownership
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 unit✓ Correct
CRents on a month-to-month basis only
DHolds a life estate in their unit
Explanation
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.
People Also Study
Related Alabama Questions
- Ownership of a cooperative housing unit (co-op) gives the owner:Property Ownership
- Which type of ownership interest gives the holder the right to use and enjoy property for the duration of their life?Property Ownership
- Which type of ownership gives two or more persons equal and undivided interests with the right of survivorship?Property Ownership
- In Alabama's condominium ownership, the individual owner owns:Property Ownership
Key Terms to Know
Fee Simple
The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.
Life EstateA freehold interest in real property that lasts only for the duration of a specified person's life.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →