In a housing cooperative, what type of interest does a member typically hold?
Correct Answer
A) Shares in the cooperative corporation plus occupancy rights
In a housing cooperative, members own shares in the cooperative corporation that owns the property, and these shares entitle the member to occupy a specific unit under an occupancy agreement. This differs from condominium ownership where individuals own their units in fee simple.
Why This Is the Correct Answer
Option A correctly identifies the dual nature of cooperative ownership. Members hold shares in the cooperative corporation that owns the property, similar to owning stock in a company. These shares are coupled with occupancy rights that allow the member to live in a specific unit. This arrangement is formalized through an occupancy agreement between the member and the cooperative corporation. Under provincial cooperative legislation, this share ownership plus occupancy right structure is the defining characteristic of housing cooperatives, distinguishing them from condominiums, rental properties, or other forms of housing tenure.
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In a housing cooperative, what is the typical ownership structure for members?
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In a jurisdiction using the Torrens system, a property is sold to a bona fide purchaser for value, but it is later discovered that the vendor's title was obtained through forgery. What is the purchaser's position?