Property Rights & Ownership

    Cooperative (Co-op)

    A form of ownership in which a resident owns shares in a corporation that owns the building and holds a proprietary lease for the unit.

    In a cooperative, a corporation owns the entire building. A resident buys shares in that corporation and receives a proprietary lease that grants the right to occupy a specific unit. The resident owns stock, not real property.

    Because the resident owns shares rather than a deed, financing usually involves a share loan rather than a traditional mortgage.

    On the exam

    Co-op ownership is stock plus a proprietary lease. Condo ownership is fee simple title to the unit.

    Exam trap

    A co-op owner does not hold a deed to a unit. The corporation owns the building; the resident owns shares.

    Tested in

    Property Rights (8% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.