In a cooperative, what do members primarily own?

In a cooperative, members primarily own stocks of the corporation. This structure means that instead of owning real estate directly, each member owns a share or shares in the cooperative corporation. These shares grant them the right to occupy a housing unit within the property managed by the cooperative.

The shares represent ownership interest in the overall corporation that holds the title to the real estate. Thus, when a member purchases a unit, they are essentially buying shares that entitle them to occupy a specific unit, but the real estate is held collectively as part of the corporation’s assets.

This differs from direct ownership situations, such as condominiums, where individuals own their specific units along with a share of common areas directly. In the case of bond certificates, they are financial instruments that represent a loan made to the issuer, and they do not typically relate to ownership in real estate or a cooperative structure. Hence, the focus on stock ownership in cooperatives correctly highlights the unique ownership model that characterizes this type of housing arrangement.