What is a Stock Cooperative (Stock Co-Op)?

The South Bay does have a few stock cooperative complexes used for residential housing, also known as stock co-ops, whereby normally a corporation is formed, and each shareholder (owner) receives a right to exclusive use of a portion of the property owned by the corporation.  This is different than condominium ownership, whereby a Buyer owns an undivided interest in the common areas of the real property, and an exclusive interest to the air space within the walls of their individual unit.  The exclusive use portion of a stock co-op usually appears visually similar as a Buyer walks through it to a condominium unit, although stock co-op transactions are structured differently and typically have fewer financing options.  Stock co-ops are managed by a board of directors, and when a Buyer purchases a stock co-op, the Buyer owns stock shares in the corporation.  The corporation owns the real property.  Sometimes the property taxes for stock co-ops are significantly lower than property taxes would be for a condominium at the same price, as the property tax bill is split amongst all shareholders in a stock co-op, and based originally on the purchase price when the corporation bought the property.  Market value for a stock co-op will depend on normal factors such as square footage and the neighborhood, and also on whether the corporation has restrictions on resale pricing and/or a current mortgage on the real property.  When a Buyer can obtain financing on a stock co-op, the lender usually holds the stock certificate (similar to a pink slip), until the note is paid off in full, and then the stock certificate is returned to the owner.  For any additional questions, please contact Danielle Whitney Moore with Team Whitney at (310) 987-9103.  Some of the complex addresses in the South Bay, mainly in Torrance and Long Beach, that are stock cooperatives are as follows: