What is the primary characteristic of a cooperative apartment building?

The primary characteristic of a cooperative apartment building is that it is owned by a corporation. In a cooperative, the building is typically owned by a single entity, which is a corporation formed by the residents of the building. Each tenant then buys shares in this corporation, rather than owning their individual apartment outright. This structure allows the corporation to collectively manage the property and make decisions regarding its operation and maintenance.

Ownership through a corporation means that instead of having direct ownership of a portion of real estate, residents possess shares that correspond to their apartment, which convey the right to occupy and use that specific unit. This shared ownership model emphasizes collaboration among residents and often involves a board of directors made up of fellow residents who oversee the management of the property.

While board approval for sales can be a component of running a cooperative, it is not a defining characteristic of what makes a co-op, as the ownership structure itself is the key aspect that differentiates it from other types of housing, such as condominiums or rental apartments.