Cooperative Housing

Definition of "Cooperative housing"

An apartment ownership method in an apartment complex with stock in a corporation. Each owner has a lease on an apartment, but does not have outright ownership as in a condominium. Since there is no individual apartment ownership, cooperative shareholders cannot obtain individual mortgage financing and must pay a share of the overall mortgage and tax payments with all the other cooperative owners. Individual cooperative shareholders are at risk since they are responsible should one or more shareholders default.

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