Virginia Real Estate License Law Practice Test 2025 – Complete Exam Preparation

In a cooperative, the title to the real estate is held by the corporation or association. This legal structure means that the cooperative owns the property, which allows the cooperative to manage the real estate as a single entity. Residents or shareholders do not directly own an individual unit but rather own shares in the cooperative corporation, which grants them the right to occupy a specific unit along with the common areas of the property.

This distinction is essential in understanding how cooperatives function in Virginia Real Estate Law. Residents are essentially shareholders who maintain an interest in the cooperative but do not have direct ownership of the property title. The corporation is responsible for maintaining the property and managing common areas, while stockholders have a say in the governance of the cooperative.

The other choices do not accurately describe ownership in the context of a cooperative structure. Underwriters typically refer to insurance or financing entities and do not hold title to the real estate. Stockholders own shares in the corporation, but their shares represent their interest rather than direct ownership of the property. The residents, while they occupy and use the property, are also not owners of the title; their rights stem from their shareholding in the cooperative.