Property OwnershipIntermediateDelaware Exam

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

ADirect individual ownership of a specific unit combined with a fixed percentage interest in shared common areas, under this approach
BOwnership of shares in a corporation that owns the building, with a proprietary lease granting the right to occupy a specific unitCorrect
CJoint ownership of a vacation property shared among multiple owners
DA government-subsidized housing program for low-income residents

Why Ownership of shares in a corporation that owns the building, with a proprietary lease granting the right to occupy a specific unit Is Correct

Answer B: Ownership of shares in a corporation that owns the building, with a proprietary lease granting the right to occupy a specific unit

In a cooperative, residents own shares in a corporation that holds title to the entire building. Each shareholder receives 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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