Property Ownership

Which of the following is a characteristic of a cooperative (co-op) as opposed to a condominium?

AUnit owners hold fee simple title to their individual unit
BResidents own shares in a corporation that owns the building, and hold a proprietary lease✓ Correct
CCommon areas are owned by an HOA
DOwners may refinance their unit independently of other owners

Explanation

In a cooperative, residents do not own real estate directly. Instead, they own shares in a corporation that holds title to the entire building, and those shares entitle them to a proprietary lease for a specific unit.

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