Which ownership type features occupants who are shareholders and hold a proprietary lease?

• A. Time Share Ownership
• B. Cooperative Ownership
• C. Freehold Estate
• D. Fee Simple Defeasible

Answer: (B)

In a cooperative ownership, occupants are shareholders in the cooperative corporation that owns the building, and they hold a proprietary lease granting them the right to occupy a specific unit. Instead of owning a deed to a unit, residents own shares in the corporation and receive a long-term lease for their unit. The proprietary lease is the contract that gives exclusive occupancy, while the actual real property is owned by the corporation.

This setup is distinct from time-share ownership, where you own a timed right to use a property for part of the year; a freehold estate, where you own the property outright; and a fee simple defeasible, a type of ownership that still involves outright ownership but with conditions that could defeat it.