In a cooperative property, what do residents own?

In a cooperative property, residents own shares in the corporation that owns the entire building and property. This means that instead of owning their individual units outright, the residents are shareholders in the entity that holds the title to the property, typically represented by shares and a proprietary lease. The number of shares each resident holds usually correlates to the size or value of their unit within the cooperative, and this ownership grants them the right to occupy their specific unit.

This structure fosters a community where decisions regarding the property are made collectively, and residents have a say in the management and rules of the cooperative. Importantly, owning shares also includes responsibilities, such as paying monthly maintenance fees that cover the property’s operating expenses, which often address common areas, utilities, and management costs. Thus, the essence of cooperative ownership lies in the shared ownership model where each resident's ownership is reflected in the shares they hold in the corporation.