Florida Real Estate Practice Exam

Which of the following is a true statement about cooperatives?

1. A cooperative is a fee simply type of ownership

2. A cooperative is a joint venture with shareholders, formed for their benefit and governed by the developer.

3. All cooperatives have specific criteria for residents

4. Unlike a condominium, the cooperative corporation does not own the land, buildings, and all rights and interests in the corporation

The correct answer is: All cooperatives have specific criteria for residents

Cooperatives are a unique form of ownership where residents work together as equal partners to benefit themselves and the community. This means that all residents have a say in the decisions and policies that affect their living space. Option A is false because cooperatives are not "fee simple" ownership, which refers to individual ownership rights over property. Option B is incorrect because cooperatives are not a joint venture with shareholders, but rather a community of co-owners. Option D is also incorrect because co-ops do own the land and buildings collectively, whereas in a condominium, each unit owner has individual ownership of their unit. Option C is the only true statement because cooperatives do have specific criteria for residents, such as income and residency requirements, in order to maintain the cooperative's community and values.