What is a cooperative in the context of real property ownership?

In the context of real property ownership, a cooperative refers to a specific arrangement where residents do not own their individual units as traditional real estate but rather own shares in a corporation that owns the entire building or property. This method of ownership allows the shareholders (residents) to occupy a specific unit in the building and collectively manage the property through the co-op corporation.

Each member's share typically gives them the right to occupy a unit, and importantly, the co-op structure promotes a sense of community among residents since decisions regarding maintenance, finances, and rules are made collectively. This co-ownership model differs from other forms of real property ownership, such as a condominium, where individuals hold title to their specific units and a shared interest in common areas.

The other choices refer to different concepts. Ownership through a trust involves a legal entity holding title to the property for the benefit of beneficiaries. Joint ownership implies direct shared ownership but does not reference shares or a corporate structure. A rental agreement pertains to leasing arrangements, which does not confer ownership rights. Therefore, the description of a cooperative captures the essence of share-based ownership associated with collective living arrangements in real property.