What does "Co-ops" refer to in real estate terms?

In real estate, "Co-ops" refers to a type of multi-party ownership where residents do not own their individual apartments outright. Instead, they own shares in a corporation that owns the entire building. This arrangement allows for collective ownership and management, and residents have the right to occupy a unit based on the number of shares they own. Co-op ownership is distinct from traditional forms of property ownership, such as condominiums, where individuals hold title to their specific units.

This community-oriented structure encourages collaboration among residents in decision-making processes, such as maintenance and finances, reflecting a joint venture approach to living. Therefore, the identification of co-ops as a type of multi-party ownership accurately captures its essence and operational dynamics within the real estate market.