Understanding Cooperative Apartment Ownership

A

The correct answer is A. Cooperative Apartment.

A cooperative apartment is a type of housing where the residents of the building own a share in a nonprofit corporation that owns the building. Each resident, known as a shareholder, owns a proportionate share of the building based on the size of their apartment or unit.

The cooperative corporation manages the building and is responsible for paying the building's mortgage, property taxes, and other expenses. Shareholders pay monthly maintenance fees to cover these costs, as well as any necessary repairs or improvements.

In a cooperative apartment, the shareholders have the right to occupy their individual units but do not actually own them. Instead, they own a share of the cooperative corporation, which gives them the right to occupy their unit and participate in the management of the building.

Compared to traditional condominiums or rental apartments, cooperative apartments often have more stringent requirements for ownership and maintenance, and the process of buying or selling a cooperative apartment can be more complex. However, cooperative apartments can also offer advantages such as lower monthly costs and greater control over the management of the building.