Property OwnershipIntermediateNorth Carolina Exam

In NC, a 'proprietary lease' in a cooperative (co-op) gives the shareholder the right to:

AOwn the individual unit outright

BOccupy a specific unit as a tenant of the cooperative corporation that owns the buildingCorrect

CSell shares of the corporation without restrictions, as is customary in this jurisdiction

DModify common areas without board approval

Why Occupy a specific unit as a tenant of the cooperative corporation that owns the building Is Correct

Answer B: Occupy a specific unit as a tenant of the cooperative corporation that owns the building

In a co-op, shareholders own stock in the cooperative corporation and receive a proprietary lease granting them the right to occupy a specific unit; they do not hold title to the unit directly.

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.

People Also Study

Key Terms to Know

Easement

A non-possessory right to use another person's land for a specific purpose.

Fee Simple

The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Tenancy in Common

Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.