Instead of owning a unit outright, a resident owns shares in a corporation that owns the building. That structure is a cooperative, or co-op. The shares entitle the owner to a proprietary lease for a specific apartment.

Co-ops are common in certain large cities. Boards of directors, elected by shareholders, approve new buyers, set rules, and manage building finances. Financing is often in the form of a share loan rather than a traditional mortgage. Monthly maintenance fees cover the building’s underlying mortgage, taxes, and operating costs.

Boards can be selective, sometimes rejecting applicants for financial or other reasons. Resale can take longer than condominium sales because of the approval process. For residents who value tight community control and are comfortable with the share structure, co-ops remain a durable housing form.

Ownership feels different when the asset is shares rather than real property itself.