What Is a Cooperative Property

A housing cooperative or “co-op” is a type of residential housing option that is actually a corporation whereby the owners do not own their units outright. Instead, each resident is a shareholder in the corporation based in part on the relative size of the unit that they live in.

What type of property is a cooperative?

A co-op, which is short for a housing cooperative (or cooperative housing), is a type of real estate that is significantly different from owning a condo or renting an apartment. In a co-op, residents don’t actually own their housing units or any real property for that matter.

What are the pros and cons of buying a co-op?

• The main advantage of purchasing a co-op is that they are often cheaper to buy than a condo.
• Co-ops are typically more financially stable.
• The instance of foreclosure is rare.
• Co-ops are typically going to be a higher owner occupancy rate.
• You can typically get better square footage for your money.