STOCK COOPERATIVES

Unlike condominiums where the common areas are owned in common by the membership, shareholders in a stock cooperative do not own the common areas. Instead, the common areas are owned by a corporation formed for that purpose.

Members of the association buy shares of stock in the corporation. As "shareholders" members are given the exclusive right to occupy a particular unit in the building. The exclusive right is usually in the form of a lease from the corporation.

The owners' interest in the corporation, whether evidenced by a share of stock, a certificate of membership, or otherwise, is deemed to be an interest in a common interest development. Civil Code §1351(m)

Updated 8/12/2007