Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following best describes co-operative ownership?

1. Each member owns shares in a corporation but does not possess direct ownership of individual units.

2. Each owner has a fee simple title to his or her unit with a share in the common elements.

3. Multiple owners hold title as joint tenants.

4. Ownership is limited to freehold townhomes.

5. Ownership includes exclusive use of parking space and storage.

6. Owners have monthly fees similar to condominium fees.

The correct answer is: Each member owns shares in a corporation but does not possess direct ownership of individual units.

Co-operative ownership is characterized by the structure in which members own shares in a corporation that holds the title to the property. This means that while a member has an ownership interest through their shares, they do not directly own a specific unit or area of the property, but rather have the right to occupy a unit designated by the cooperative. This model promotes shared governance and management of the property among members. The other options describe ownership structures that either pertain to different types of property ownership, such as condominium ownership where individuals have fee simple titles to units, or joint tenancy, which involves shared title among multiple owners. The mention of specific ownership limitations, such as only freehold townhomes or exclusive use of features like parking spaces, also does not reflect the broader cooperative framework that includes shared facilities and governance. Monthly fees associated with co-ops can be similar to condominium fees but are typically linked to the maintenance and operation of the entire property rather than individual unit ownership.