In a cooperative ownership, who holds the title to the property?

In a cooperative ownership arrangement, a single corporate entity holds the title to the property. This structure is fundamental to how cooperatives operate. The cooperative itself is typically organized as a corporation that owns the entire property, and individual shareholders do not own their specific units outright; instead, they purchase shares in the corporation. The shares grant them the right to occupy a particular unit within the property. This model emphasizes collective ownership and management by the residents through their shares in the corporation, as opposed to traditional real estate ownership where individuals hold titles to their specific units or properties.

This distinction is crucial to understanding the unique nature of cooperative housing, which differs from condominium ownership where individuals own their specific units and a share of the common areas. In a cooperative, the corporate entity manages the property, making decisions on maintenance, financing, and other operational aspects without requiring individual title holders. This encourages a communal living environment, which is a key aspect of the cooperative model.