What is the main difference between cooperative ownership and condominium ownership?
Correct Answer
B) Co-op owners hold corporate shares, not title to real estate
In cooperative ownership, residents own shares in a corporation that owns the entire building, along with a proprietary lease for their unit. This differs from condominiums where owners hold direct title to their individual units plus a share of common elements.
Why This Is the Correct Answer
Option B correctly identifies the fundamental legal distinction between these ownership structures. In cooperatives, residents purchase shares in a corporation that owns the entire building and receive a proprietary lease granting occupancy rights to a specific unit. This is fundamentally different from condominium ownership where individuals hold direct fee simple title to their unit plus an undivided interest in common elements. This corporate vs. direct ownership structure is the defining characteristic that distinguishes cooperatives from condominiums under Canadian property law.
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