In a cooperative (co-op) ownership structure, a corporation holds the title (fee simple) to the entire property, including the land and all improvements. An individual who purchases a unit does not buy the real estate itself. Instead, they purchase shares of stock in the corporation. This stock ownership entitles the shareholder to a long-term, exclusive lease, known as a proprietary lease, for a specific unit within the property. Therefore, the "owner's" interest consists of personal property (the shares of stock) and a leasehold right to occupy the unit.

A. This describes condominium ownership, where an individual holds a fee simple title to their unit and is a tenant in common for the shared areas.

B. This is also a feature of condominium ownership, where the interest in common areas is typically proportional to the unit's value or size.

C. This describes a timeshare interest, which grants the right to occupy a property for a specific, recurring period each year.

1. North Carolina Real Estate Commission. (2023). North Carolina Real Estate Manual (2023-2024 ed.).

Page 2-23, Section: Cooperative Ownership: "In a cooperative, title to the land and the building is held by a corporation... The purchaser of a cooperative unit becomes a shareholder in the corporation and, by virtue of that stock ownership, receives a proprietary lease to a specific apartment in the building. The cooperative shareholder’s interest in the cooperative is considered to be personal property." This directly supports the structure described in option D and refutes the fee simple ownership mentioned in A, B, and C.

2. Jacobus, C. J. (2016). Real Estate Principles (12th ed.). Cengage Learning.

Chapter 4, How Real Estate is Owned, Section: Cooperative Apartments: "The land and building are owned by a corporation... Each person who wishes to live in the building buys stock in the corporation and, in turn, receives a proprietary lease to the apartment he or she will occupy." This standard university text confirms that cooperative ownership involves shares of stock and a proprietary lease, not a fee simple interest in the unit.