Cooperative (Co-op)
A form of ownership in which a resident owns shares in a corporation that owns the building and holds a proprietary lease for the unit.
Quick flashcard
What does Cooperative (Co-op) mean on the Texas real estate exam?
Answer: A form of ownership in which a resident owns shares in a corporation that owns the building and holds a proprietary lease for the unit.
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Cooperative (Co-op) definition
In a cooperative, a corporation owns the entire building. A resident buys shares in that corporation and receives a proprietary lease that grants the right to occupy a specific unit. The resident owns stock, not real property.
Because the resident owns shares rather than a deed, financing usually involves a share loan rather than a traditional mortgage.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Ownership & Title (9 of 80 National)
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