What characterizes a stock cooperative?

A stock cooperative, often referred to as a co-op, is characterized by its structure as a corporation that holds title to improved real property. In this arrangement, individuals buy shares in the corporation, which in turn grants them the right to occupy a unit within the building or complex owned by the corporation. The ownership of the real estate is held collectively by the corporation, and each shareholder has a proprietary lease for their unit, which typically includes the right to use common areas.

The emphasis on corporate ownership differentiates stock cooperatives from other types of housing arrangements. While a rental agreement pertains to traditional leasing scenarios, or a sole proprietorship specifically relates to individual ownership of a business rather than a collective property structure, the corporate model of ownership is what defines a stock cooperative. Additionally, while some stock cooperatives may operate as non-profit organizations for housing, not all do; thus, the concept of a non-profit organization does not universally apply to all stock cooperatives.