Different Forms of Real Estate Title
The complete and unrestricted title to land.
An ownership right to use and possession of a property that is shared among co-owners, with no one co-owner having exclusive rights to any portion of the property. For example, ten investors form a Tenancy in Common and purchase a 100-acre tract of land. Each cotenant obtains an undivided interest in the property. All decisions as to the use and disposition of the land are made collectively by all cotenants. No one cotenant may unilaterally mortgage, develop, or sell a portion of the tract. A partnership tax return is filed. Each co-owner also includes a share of the income, loss, gain, etc., in his/her own personal income tax return.
Shares in a CO-Operative
Cooperative members do not own real estate but have shares in the Cooperative Corporation.
Shareholders have the right to occupy individual units in a building, reflecting their share in the Coop Corporation which owns the property.
Cooperatives operate for the benefit of their members, on a non-profit basis, in order to provide them with housing and community services at the lowest cost.
Cooperatives and Condominiums operate in similar ways. Co-op members set the rules and elect between themselves a Board of Directors, which runs the Corporation.
Daily operations of the Cooperative are usually taken care of by a professional management company hired by the Board of Directors. However, unlike condo unit owners, members of the Cooperative are expected to participate more in the community.