Ace the PSI New Jersey Real Estate Test 2025 – Unlock Your Property Power!

In a co-operative (co-op) housing situation, residents own shares in the corporation that owns the property. This structure is distinctive from traditional homeownership, where individuals would own their specific units. When a resident buys into a co-op, they are purchasing shares that represent a portion of the entire building or complex. This entitles them to occupy a specific unit and participate in the governance of the co-op, typically through a board of directors elected from among the shareholders.

The shares owned in the co-op are linked to a proprietary lease, which grants the resident the right to occupy a specific unit. However, it is the shares themselves that represent ownership in the cooperative entity, not direct ownership of the physical unit. This structure often allows for a communal approach to property management and helps to regulate the community.

Other options presented refer to aspects not owned by residents in a co-op arrangement, such as the land itself, individual leases for each unit, or any mortgages. In essence, what residents truly possess in a co-op is a stake in the collective ownership of the entire property through their shares in the corporation.