Finance
Which of the following best describes a 'co-op' mortgage in New York City?
AA mortgage on the real property underlying the cooperative corporation
BA loan secured by the purchaser's cooperative shares and proprietary lease, technically a personal property loan rather than a real property mortgage✓ Correct
CA government-backed loan for low-income cooperative purchasers
DA mortgage that two people co-sign together
Explanation
In NYC co-op purchases, the buyer acquires shares in a cooperative corporation and a proprietary lease rather than real property. Financing is in the form of a 'share loan' secured by the shares and proprietary lease — personal property — not a real property mortgage.
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