Alabama Real Estate Practice Exam

Co-op ownership is unique because the owners do not have legal ownership of the property through a deed like traditional homeownership (A). Instead, owners own shares in the underlying corporation that owns the property. This allows for a more communal ownership structure, where all owners have a say in the management of the property. Additionally, unlike traditional homeownership, owners of a co-op do not pay maintenance or property taxes (C). However, this does not mean that owners have no financial responsibility. In fact, they are still responsible for monthly fees and assessments that cover the costs of managing and maintaining the property. Lastly, while traditional homeowners have limited liability if something were to happen on their property, co-op owners have unlimited liability (D) as they are considered shareholders of the corporation.