Which of the following best describes the ownership structure in a housing cooperative?
Correct Answer
D) The cooperative corporation owns the entire property and residents own shares in the corporation
In a housing cooperative, the cooperative corporation holds title to the entire property, and residents purchase shares in the corporation which entitles them to occupy a specific unit. This differs from condominiums where individuals own their units directly.
Why This Is the Correct Answer
Option D correctly describes the cooperative ownership structure where the cooperative corporation holds title to the entire property and residents own shares in the corporation. This share ownership grants them the right to occupy a specific unit through an occupancy agreement. This structure is established under provincial cooperative legislation and creates a unique form of tenure that differs from both freehold and leasehold arrangements. The shares represent both ownership interest and occupancy rights, making this the defining characteristic of housing cooperatives in Canada.
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