Cooperative

The unit owner in a Cooperative has purchased a share in a corporation whose principal asset is the building(s).

 

•The shareholder receives a proprietary lease to occupy a specific unit in the building(s)

•The shareholder occupies the unit in perpetuity but doesn't actually own it

•Each shareholder pays a proportional share of the corporation's expenses including mortgage charges, taxes, payroll, maintenance, etc.

•The lease and shares are considered personal property

 

The owner of a cooperative unit does not own any real estate.  He owns personal property that is a share of stock and a proprietary lease to occupy the building.  The mortgage is made (and paid) by the corporation not the individual.

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