California's Subdivided Lands Law treats the sale of stock cooperative interests as the sale of subdivision interests (Business & Professions Code sections 11003.2 and 11004.5). A cooperative (co-op) housing project in California differs from a condominium in that the co-op resident:
Correct Answer
B) Owns shares in a corporation that owns the building, plus a proprietary lease for their unit
In a cooperative the residents do not own their units directly. A corporation owns the building, and each resident owns shares in that corporation together with a proprietary lease giving the right to occupy a particular unit. Business & Professions Code 11003.2 takes the meaning of 'stock cooperative' from Civil Code 4190, and 11004.5 places a stock cooperative with five or more shareholders inside the Subdivided Lands Law, so the interests are sold as subdivision interests under a DRE public report. A condominium owner, by contrast, holds fee title to the unit plus an undivided interest in the common area.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An environmental impact statement (EIS) is a detailed report required for major federal projects or actions that may significantly affect the environment. It is mandated by the National Environmental Policy Act (NEPA).
A nonconforming use is a property use that was legally established before a zoning change but no longer complies with the current zoning ordinance. It is commonly called a "grandfathered" use.
A planned unit development (PUD) is a zoning classification that allows mixed land uses (residential, commercial, recreational) within a single development with flexible zoning standards. Homeowners typically own their lot and share common areas.
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