Grace purchases a unit in a housing cooperative in Baltimore City. Under Maryland law, which of the following best describes Grace's ownership interest?
Correct Answer
A) Grace owns shares in a corporation that owns the building and has a proprietary lease for her unit
In a housing cooperative, residents do not own their individual units in fee simple. Instead, they own shares in the cooperative corporation that holds title to the entire building. These shares entitle the shareholder to occupy a specific unit under a proprietary lease granted by the corporation. This is fundamentally different from condominium ownership and is an important distinction under Maryland property law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
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