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Their heyday was from the
late 40's to the early 60's. Most importantly
they are Freehold. You are buying shares in a
company (in relationship to the suite size),
which owns the land, and building, which in turn
gives you a suite in the building.
A "co-operative unit" is the interest of a person
in a co-operative corporation that includes the
right to use or occupy a part of the land that the
co-operative owns or has an interest in. A
"co-operative corporation" is essentially any form
of incorporated entity, such as a company or
society, any partnership or limited partnership that
is the owner of the land, where a majority of the
persons entitled to occupy the land are or will be
the shareholders, owners or partners of the
corporate entity, partnership or limited
partnership. Thus, an owner of a co-operative unit
acquires shares or some other form of ownership in a
corporate entity or partnership, which carry the
right to occupy only a portion of the land that the
co-operative corporation owns. This particular
portion is often an apartment or recreational
vehicle site.
Sellers are unable to carry primary or secondary
financing on co-operatives by way of a mortgage
registered against the title or by an Agreement for
Sale, as there is no title in a co-operative unit to
encumber. It is, therefore, strongly recommended, in
a situation where the Seller is asked to carry any
financing, that the Seller's lawyer and the Buyer's
lawyer be consulted before the acceptance of any
offer.
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