A 'CO-OP' (Cooperative) is a dual concept in real estate that can refer to a cooperative arrangement between agents for splitting commissions, or more commonly, a type of housing where residents own shares in a corporation that owns the property.
A master mortgage loan refers to the collective mortgage debt secured on a building used for cooperative housing. Each co-op tenant-shareholder's obligation is separate from any individual loans used to purchase the respective co-op shares.
A proprietary lease in a cooperative apartment building is an agreement granted by the corporation to its stockholders, which entitles them to rent or use a specific apartment unit upon meeting the conditions outlined.
