The unit owner in a Cooperative has purchased a share in a corporation whose principal asset is the building(s).
•The shareholder receives a proprietary lease to occupy a specific unit in the building(s)
•The shareholder occupies the unit in perpetuity but doesn't actually own it
•Each shareholder pays a proportional share of the corporation's expenses including mortgage charges, taxes, payroll, maintenance, etc.
•The lease and shares are considered personal property
The owner of a cooperative unit does not own any real estate. He owns personal property that is a share of stock and a proprietary lease to occupy the building. The mortgage is made (and paid) by the corporation not the individual.