A co-op apartment, or cooperative apartment, is a type of housing where you do not own your specific unit outright. Instead, you own shares in a non-profit corporation that owns the entire building or property. Your ownership corresponds to shares that entitle you to live in a particular unit within the co-op. This means you are essentially a shareholder in the cooperative rather than a direct owner of real estate. Key characteristics of a co-op apartment include:
- Ownership of shares in the cooperative corporation, not the physical apartment unit.
- Receipt of a proprietary lease or occupancy agreement to live in a specific apartment.
- Collective ownership and management by all members/shareholders, often with a board of directors elected from residents.
- Members are responsible for decisions regarding the building, maintenance, and financial obligations.
- Co-ops often operate on a cost basis, which can make them more affordable than traditional condos or rentals.
- Approval by the co-op board is usually required for buying or selling shares, leading to more oversight and regulations compared to condos or rental apartments.
Co-op apartments are common in major cities and offer a community-oriented, economically democratic approach to housing. Members share responsibilities and governance, with an emphasis on affordable and sustainable living. This model is distinct from condominiums, where individuals own their units directly and receive a deed. In summary, a co-op apartment means you are a shareholder in a cooperative entity that owns the building, with the right to occupy a unit, rather than owning the apartment itself as real estate.
