What is a cooperative (co-op)?

A cooperative, or co-op, is a form of shared property ownership in which a corporation holds legal title to an entire building or property, and individual residents purchase shares in that corporation rather than owning their specific units outright. In return for their shares, residents receive a proprietary lease granting them the right to occupy their unit. Co-op boards typically have significant authority over who can purchase shares, which can make the buying process more complex than purchasing a standard home or condo.

Co-ops are far more common in New York City than in the Western Catskills, and buyers relocating from the city may encounter this term mostly in the context of selling their current home rather than purchasing in the region. That said, occasional co-op-like arrangements can surface in rural settings, and buyers should be aware of the distinction. Financing a co-op differs from financing a traditional home, and not all lenders offer co-op loans, so it is worth confirming your lender's capabilities early if you encounter this ownership structure.