Property OwnershipIntermediateAlabama Exam

Ownership of a cooperative housing unit (co-op) gives the owner:

AFee simple title to their specific unit
BShares in a corporation that owns the building plus a proprietary leaseCorrect
CA long-term leasehold interest in the building, across most transactions
DTenancy in common with all other unit owners

Why Shares in a corporation that owns the building plus a proprietary lease Is Correct

Answer B: Shares in a corporation that owns the building plus a proprietary lease

In a cooperative, residents own shares in the corporation that owns the building and receive a proprietary lease entitling them to occupy their specific 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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