Arizona Real Estate License Practice Exam

The ownership structure that involves a corporation and shareholders is a cooperative. In a cooperative, the corporation owns the property, and individuals purchase shares in the corporation. Owning shares gives them the right to occupy a specific unit within the property, effectively letting them live there as long as they follow the rules set by the corporation. This structure allows for a community living arrangement, where residents have a say in the management and maintenance of the property, similar to a democratic governance model.

In contrast, fee simple ownership pertains to individuals owning property outright, including the land and any structures on it, without the involvement of shares or a corporation. A condominium involves individual ownership of units within a larger property, along with shared ownership of common areas, but does not typically operate on a shareholders basis. A timeshare, on the other hand, allows multiple individuals to own the right to use a property for specific periods, but it does not involve corporate ownership in the same manner as a cooperative.