Which statement about a cooperative is true?

Study for the UBC Real Estate Exam. Access flashcards and multiple choice questions with hints and explanations. Enhance your preparation and ensure success!

In a cooperative, the property is owned by a corporation, not by individual residents in fee simple. People don’t own a unit outright; they own shares in the corporation that owns the building and receive a proprietary lease giving them the right to occupy a specific unit. Because ownership is via stock in a corporation, there isn’t a deed to a particular unit, and transfers aren’t simple unit-by-unit sales like in a condo or single‑family home. Instead, selling your interest usually means selling your shares and transferring your proprietary lease, often with the condo board’s approval or consent, which adds a layer of control over who can take occupancy. Financing tends to be more challenging as well, since lenders evaluate the coop as a corporate asset and may impose stricter requirements, higher down payments, or other restrictions. So the key truth is that a cooperative is owned by a corporation.