Florida Broker Practice Exam

In a cooperative, who holds the title to the land and improvements?

1. The individual owners

2. The corporation

3. The management company

4. The local government

The correct answer is: The corporation

In a cooperative, the corporation holds the title to the land and improvements. This structure is fundamental to how cooperatives operate. When individuals purchase a unit in a cooperative, they are not buying real estate in the traditional sense; instead, they are buying shares in the corporation that owns the entire property, which includes both the land and the building. This means that all members of the cooperative collectively own the property through their shares in the corporation, but control and management of the property are maintained by the corporation itself. Ownership is reflected through the issuance of stock certificates rather than through individual deeds to specific units. This unique ownership model distinguishes cooperatives from other forms of real estate ownership, such as condominiums or single-family homes, where individual owners hold direct titles to their properties. Thus, the correct understanding here is based on the structural and legal framework of a cooperative, where the corporate entity manages the property and maintains the title, aligning the interests and responsibilities of the members.