Co-op: you own STOCK + a proprietary lease — personal property, board approval to sell
Before you read
Test yourself first: 2 questions
Question 1 of 2
A key financial RISK that distinguishes cooperative ownership from condominium ownership is that:
Answer: C. A co-op is financed by a single blanket mortgage on the whole building. Because owners share responsibility for it, defaults by some shareholders can endanger the entire building, creating risk not present with separately-mortgaged condos.
Question 2 of 2
Common-interest ownership communities such as condominiums and PUDs are typically governed and maintained by which body, funded through regular assessments?
Answer: B. An owners' association (HOA) manages the common-interest community, enforces the CC&Rs, and levies assessments on owners to maintain shared areas and pay common expenses.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Condo: fee simple in the UNIT + undivided share of common elements; own real estate
- Co-op: you own STOCK + a proprietary lease — personal property, board approval to sell
- PUD: own your lot + house; HOA owns common areas
- Timeshare: right to use for a period — estate (deeded) or use (contract)
- Exam cue: co-op owner pays 'maintenance'; condo owner pays 'assessments/HOA dues'
Condos, Co-ops, PUDs & Timeshares: FAQs
Is Condos, Co-ops, PUDs & Timeshares on the real estate exam?
Yes. Property Ownership & Land Use is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
