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Real Property LawCooperative OwnershipMEDIUM

What is the key difference between a condominium and a cooperative housing arrangement?

Correct Answer

B) Cooperative owners hold shares in a corporation while condo owners hold real property

In a cooperative, residents own shares in a corporation that owns the building and have a right to occupy a specific unit, while condominium owners hold fee simple title to their unit plus an interest in common elements. This fundamental difference affects financing, transfer rights, and legal responsibilities.

Answer Options
A
Condominiums are always more expensive than cooperatives
B
Cooperative owners hold shares in a corporation while condo owners hold real property
C
Condominiums require board approval for all sales
D
Cooperatives cannot obtain mortgage financing

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