A buyer of a residential unit receives stock as a form of ownership. This is best described as?

The situation described involves the buyer receiving stock in a corporation, which is a key characteristic of cooperative ownership. In a cooperative, residents do not own their individual units outright; rather, they own shares in the cooperative corporation that owns the entire property. This arrangement allows residents to occupy their specific units through a lease agreement with the cooperative.

In this model, the ownership structure is different from traditional real estate ownership where individuals hold title to their property (like in fee simple ownership). Consequently, it is crucial to recognize that owning shares in a cooperative grants the buyer rights to occupy a unit but does not convey property ownership in the conventional sense.

The other options refer to different types of real estate ownership or community arrangements. Fee simple ownership implies full ownership of the land and property, which does not apply here. A townhouse typically refers to a style of dwelling where individuals own their unit and share walls, and a master planned community involves a larger development with various types of residences and amenities. None of these options involve the stock ownership structure that defines cooperatives.