Property Ownership

What is a 'cooperative' (co-op) and how does it differ from a condominium in Pennsylvania?

AA cooperative is a type of residential HOA; a condominium is a commercial property type

BIn a co-op, residents own shares in a corporation that owns the building and hold a proprietary lease for their unit; in a condo, owners hold fee simple title to their individual unit✓ Correct

CCo-ops require majority owner approval to sell; condos can be sold freely

DCooperatives are for commercial use; condominiums are for residential use only

Explanation

In a cooperative, residents own shares in the cooperative corporation and hold a proprietary lease entitling them to occupy a specific unit. The corporation owns the real property.

People Also Study

Key Terms to Know

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.

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

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.