What type of land ownership allows residents to own shares in a corporation that owns the entire property?

The type of land ownership that allows residents to own shares in a corporation that collectively holds the entire property is known as a cooperative, often referred to as a co-op. In this arrangement, instead of owning individual units outright, residents purchase shares in the cooperative corporation. This structure grants them the right to occupy a specific unit in the building and to participate in the cooperative's decision-making processes.

Co-ops are different from condominiums, where individuals own their units outright and have a shared interest in common areas. In a cooperative structure, the corporation itself owns the entire property, and residents are essentially investors in the corporation, which fosters a different community dynamic and governance structure. This arrangement is characterized by shared responsibility and typically involves monthly fees that cover maintenance, utilities, and other shared expenses.

Understanding this ownership model is vital for recognizing how different residential arrangements function, especially regarding finances, decision-making, and maintenance responsibilities.