Property OwnershipIntermediateCalifornia Exam

What is a 'cooperative' (co-op) form of ownership?

AOwnership shared by a city and its residents, under standard California property ownership law

BOwnership of shares in a corporation that owns the building; shareholders receive proprietary leases for their unitsCorrect

CA nonprofit housing trust, as typically recorded in a California deed

DOwnership where all residents vote on management decisions, consistent with common law property ownership principles

Why Ownership of shares in a corporation that owns the building; shareholders receive proprietary leases for their units Is Correct

Answer B: Ownership of shares in a corporation that owns the building; shareholders receive proprietary leases for their units

In a cooperative, residents own shares in the corporation that holds title to the building and receive a proprietary lease for their unit. Cooperatives are less common in California than condominiums and can restrict the transfer of shares.

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.