Which of the following best describes the key difference between cooperative ownership and condominium ownership?
Correct Answer
B) Co-op owners hold corporate shares, not real estate directly
In cooperative ownership, residents own shares in a corporation that holds title to the entire property, whereas condominium owners have direct ownership of their unit plus common elements. This fundamental difference affects financing, transferability, and legal rights.
Why This Is the Correct Answer
Option B correctly identifies the fundamental ownership structure difference. In cooperatives, residents purchase shares in a corporation that owns the entire building, giving them the right to occupy a specific unit. In condominiums, owners have direct fee simple ownership of their individual unit plus an undivided interest in common elements. This corporate share ownership versus direct real estate ownership creates distinct legal, financial, and transfer implications.
Why the Other Options Are Wrong
More Real Property Law Questions
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A developer is creating an Ontario condominium with both residential and commercial units and wants the commercial units to pay a larger share of the common expenses and to carry more votes. Under the Condominium Act, 1998, which part of this plan is permitted?
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- → An Ontario condominium declaration allocates Unit 15A a 1.2% share of the common expenses. The corporation's annual budgeted common expenses are $600,000. What does Unit 15A contribute each year, and how many votes does the unit carry at owners' meetings?
- → A Toronto condominium owner tells the board she will stop paying her common expenses because she never uses the gym and has a water-damage claim against the corporation. Under the Condominium Act, 1998, what is her position?
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