Property OwnershipIntermediateAlaska Exam

A cooperative (co-op) arrangement for housing in Alaska differs from a condominium primarily because co-op owners:

AOwn fee simple title to their individual units
BOwn shares in a corporation that owns the building and receive a proprietary lease for their unitCorrect
CHold a joint tenancy interest with all other residents, as is typically expected in this situation
DPay no property taxes on their units

Why Own shares in a corporation that owns the building and receive a proprietary lease for their unit Is Correct

Answer B: Own shares in a corporation that owns the building and receive a proprietary lease for their unit

In a cooperative, residents do not own real property directly. Instead, they own shares in the cooperative corporation that owns the entire building.

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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