Cooperative ownership refers to a type of residential property arrangement where residents do not own their individual units outright. Instead, they hold shares in a corporation that owns the entire property. This means that when someone purchases a unit in a cooperative, they are actually buying a share in the corporation, which provides them with the right to occupy a specific unit and participate in the management of the property.
In a cooperative, decisions regarding the property, such as maintenance and rules, are made collectively by the shareholders, creating a sense of community and shared responsibility. This model contrasts significantly with other forms of ownership, like condominiums, where individuals own their specific units and may make decisions independently.
Understanding cooperative ownership is essential for recognizing how it differs from traditional property ownership models, such as owning property outright or leasing. It emphasizes the importance of community and collective decision-making in residential living arrangements.