Property Ownership

In Michigan, a cooperative (co-op) housing arrangement differs from a condominium in that in a co-op:

AResidents own their individual units in fee simple
BResidents own shares in a corporation and receive a proprietary lease for their unit✓ Correct
CThe municipality owns the building and residents own the land
DOwnership is shared equally regardless of unit size

Explanation

In a cooperative, residents own shares in the corporation that owns the building and receive a proprietary lease granting the right to occupy a specific unit. Unlike condominiums, they do not own their individual unit in fee simple.

People Also Study

Study This Topic

Practice More Michigan Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Michigan Quiz →