Property OwnershipIntermediateArizona Exam

In Arizona, a 'cooperative' form of housing ownership means residents:

AOwn their individual unit in fee simple absolute, similar to a condominium, but share common area maintenance costs through a mandatory association membership

BOwn shares in a corporation that owns the building, with a proprietary lease for their unitCorrect

CShare equal ownership of all units in the building collectively through an undivided tenants-in-common interest, with no exclusive right to any particular unit

DLease their unit directly from a non-profit cooperative housing organization that holds the fee simple title and manages the building on behalf of all occupants

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

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

In a cooperative (co-op), residents own shares in a corporation that owns the entire building, and receive a proprietary lease for their specific unit. Cooperatives are rare in Arizona compared to condominiums.

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

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.

People Also Study

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.

Joint Tenancy

Co-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.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.