Alabama Real Estate Practice Exam

What does ownership in a co-op provide?

1. A specific unit only

2. Land ownership

3. Shares in the underlying corporation

4. Fractional ownership

The correct answer is: Shares in the underlying corporation

Ownership in a co-op can be confusing because it is different from traditional home ownership. Option A is not entirely correct because ownership in a co-op provides more than just a specific unit. Option B is incorrect because co-op owners do not own the land on which the co-op is built. Option D can be misleading because fractional ownership implies partial ownership, but in a co-op, all members have equal shares in the underlying corporation. This is why option C is the correct answer, as ownership in a co-op provides shares in the underlying corporation that owns and manages the entire building.