Cooperative

Question 1

What is a cooperative?

Answer 1

A multifamily building owned by a corporation

Cooperatives differ from traditional real estate ownership as they involve ownership shares in a corporation rather than direct ownership of property.

Question 2

A corporation holds title to _____ and ____

Answer 2

The land and improvements

This means the corporation owns the physical property and any structures on it.

Question 3

__________ purchase share of stock in the corporation

Answer 3

Unit owners

Unit owners are individuals who buy shares in the cooperative, granting them rights to occupy a specific unit.

Question 4

____________ lease entitles purchaser right to occupy the unit

Answer 4

Proprietary lease

The proprietary lease is a unique aspect of cooperatives, giving owners the right to live in their respective units.

Question 5

Transfer of ownership of a cooperative unit is accomplished by ____

Answer 5

Sale of stock

Unlike traditional property sales, ownership transfer in cooperatives is done through stock transactions.

Question 6

Developer sales contracts for residential cooperatives must include ______ by buyer

Answer 6

Cancellation

This is a consumer protection measure ensuring buyers can change their minds within a specified period.

Question 7

Buyer has ___ (calendar/biz) days after signing contract to cancel

Answer 7

15 calendar days

This period allows buyers to reconsider their purchase decision without penalty.

Question 8

Must include clause acknowledging receipt of articles of incorporation, bylaws and rules, and FAQs at least ____ days before signing

Answer 8

3 days

This ensures that buyers are fully informed about the cooperative’s governing documents.

Question 9

Right to cancel terminates at ____

Answer 9

Closing

After the closing, the buyer is committed to the purchase and cannot cancel the agreement.