What are units in a cooperative allocated as?

In a cooperative housing situation, the ownership structure is unique compared to traditional real estate. Residents do not own their individual units outright; instead, they own shares in a corporation that owns the entire property. These shares represent their ownership interest in the cooperative and grant them the right to occupy a specific unit within the cooperative complex.

This structure means that when considering the allocation of units in a cooperative, it is not related to traditional real estate assets, rental agreements, or percentage ownership. Rather, the correct understanding is that units in a cooperative are allocated as shares of stock. This arrangement allows residents to participate in the governance of the cooperative and share in its financial aspects, including maintenance and operational costs.

Additionally, this ownership model results in residents having rights and responsibilities that might differ from those of traditional property holders, as their agreement to live in the cooperative is formalized through the purchase of shares rather than a typical real estate transaction.