Which form involves members owning shares of stock rather than real property?

• A. Tenancy in Common
• B. Co-operatives
• C. Condominiums
• D. Community Property

Answer: (B)

The idea being tested is how ownership is structured in different housing forms. In a cooperative, the community is owned by a corporation, and residents buy shares of that corporation rather than owning a piece of real estate. Your 'ownership' is a stockholding plus a lease that lets you live in a specific unit, managed by the cooperative's board. This stock-based form of ownership is the defining feature that sets co-ops apart from other arrangements.

By contrast, owning a condo means you hold a deed to your individual unit (real property) plus an undivided interest in the shared common areas. Tenancy in common is direct real-property ownership where each person holds an undivided interest in the property itself. Community property relates to how a married couple owns property, typically as an undivided half of the property in states that recognize this regime.

So, the form that involves members owning shares of stock rather than real property is co-operatives.