In cooperative ownership, how do individuals acquire units in a building?

In cooperative ownership, individuals acquire units in a building by buying shares of stock in a non-profit corporation that owns the property. When a person purchases these shares, they gain the right to occupy a specific unit in the building, along with shared ownership of the common areas and facilities. This structure means that rather than owning real property directly, residents own a stake in the corporation that in turn owns the building, creating a different legal and financial framework compared to traditional ownership models.

The cooperative structure also typically includes rules and regulations established by the corporation, which can affect how residents manage their units and collectively contribute to the property’s maintenance and operation. This model is common in multi-family housing and provides advantages such as shared responsibilities for maintenance costs among members. Understanding this process is crucial for anyone studying real estate ownership structures in depth.