What type of ownership uses shares of stock in a corporation that provides a proprietary lease to occupy an apartment unit?

• A. Time-share
• B. Joint tenancy
• C. Condominium
• D. Cooperative

Answer: (D)

This describes a cooperative. In a cooperative, the building is owned by a corporation, and residents own shares of that corporation rather than owning the unit itself. Those shares give the holder a proprietary lease that lets them occupy a specific apartment. Because ownership is of the corporation and the lease, not the physical unit, you don’t own the unit outright. The cooperative typically has a governing board and ongoing charges for maintenance and operations. This setup is distinct from a condominium, where you hold fees simple title to a unit and share ownership of common areas; from a time-share, where occupancy is for limited periods; and from joint tenancy, which is a form of concurrent ownership with rights of survivorship, not a lease through a corporation.