CO-OPERATIVE (No Shared Liability)

• Co-operative Corporation is the only registered owner of property (registered on title); purchaser does not own unit
• Purchaser has long term, exclusive use of individual unit through a I A-ase, or Occupancy Agreement, not a Deed.
• Purchaser acquires shares in the Co-operative Corporation and is a shareholder in the Corporation.
• Purchaser becomes a member of the Co-operative Corporation which:
• (a)owns and manages the affairs of the building on behalf of the Shareholders according to the Co-operative/ Shareholder/ Occupancy Agreement, the Corporation’s By-laws, and/or private contracts, and the Rules and Regulations;
• (b)grants exclusive occupation right; to shareholders of a specific unit; and,
• (c)represents the interests of the Shareholders.
• Purchaser can finance the unit, using their shares and leasehold interest in the unit, only if there is no prohibition on pledging shares as security. Only a few lending institutions finance these types of purchases of shares and/or grant loans on these types of properties.
• Purchaser is assessed for a percentage share (based on the size of unit in comparison to the whole building) of common expenses.
• Purchaser pays for their percentage share of property taxes as a part of their monthly common expenses. The Co-operative Building is assessed and taxed as one structure.
• No legislation requiring a Capital Reserve Fund to be established for maintenance of building. Most Co-operative Corporations do have a Capital Reserve Fund for maintenance of building. No legislation exists requiring or outlining requirements for a Reserve Fund Study. No legislation exists requiring compliance with the recommendations of a Reserve Fund Study.
• Purchaser can participate in management decisions by sitting on the Board of Directors and voting as a Shareholder of the Co-operative Corporation at the General Annual Meetings.
• Purchaser is subject to the Co-operative/Shareholder/ Occupancy Agreements, Rules and Regulations, and By-laws of the Co-operative Corporation and other contractual documentation.
• Purchaser needs consent of the Board of Directors of the Co¬operative Coition/ton to sell shares, assign Lease for unit and to rent unit, which is not unreasonably withheld. There is the odd exception. Additionally, consent is required to pledge shares as security.
• Purchase of a unit should be subject to receipt of an Estoppel Certificate which identifies any outstanding or pending payments, assessments, or legal actions, re-. the unit or Corporation together with all other documents which are included.
• Co-operative Corporations may have yearly audited Financial Reports issued to all shareholders and are self-managed or managed by a professional Management Company or self-managed.

Co-Ownership Explained