What type of ownership model do cooperatives represent?

Cooperatives represent a corporate ownership model where residents hold stock in the cooperative corporation. This structure means that instead of owning their individual units outright, residents own shares in the corporation that owns the entire building or property. The number of shares typically corresponds to the size of the unit occupied by the resident, and owning these shares gives the resident the right to occupy a specific unit.

This model fosters a sense of community as residents often have a say in the management of the cooperative through voting rights linked to their ownership shares. It also means that decisions about the property are made collectively, reflecting the cooperative nature of the arrangement. The focus on stock ownership and shared responsibility distinguishes this model from others, such as individual ownership or partnerships, where the nature of property rights and decision-making processes differ significantly.