What distinguishes a cooperative from a condominium?

The defining characteristic of a cooperative is that residents own shares in a corporation, which in turn owns the entire property. This structure means that instead of owning individual units as real property, residents have a financial stake in the corporation that governs the cooperative. This is different from a condominium, where individuals hold title to their specific units and have ownership rights to their individual properties.

In a cooperative, residents typically have a say in the management of the property through their shareholder votes, unless an external management company is used, which is not the standard rule. Furthermore, while cooperative agreements often resemble rental situations because residents pay fees to the corporation, they are fundamentally different in terms of ownership structure. This cooperative model promotes a community living arrangement, where decisions regarding property maintenance and governance are made collectively by the residents as shareholders.