Property OwnershipIntermediateDelaware Exam

What is a 'cooperative' (co-op) as a form of property ownership in Delaware?

AA partnership between two developers sharing a property
BA corporation that owns the real estate, with residents owning shares and holding proprietary leasesCorrect
CSimply a distinct type of condominium structure where every single unit is jointly owned by all members
DA government-subsidized housing program

Why A corporation that owns the real estate, with residents owning shares and holding proprietary leases Is Correct

Answer B: A corporation that owns the real estate, with residents owning shares and holding proprietary leases

In a cooperative, the real estate is owned by a corporation. Residents purchase shares in the corporation and receive a proprietary lease entitling them to occupy a 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.

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