A subscription agreement is typically prepared when purchasing which type of property?

A subscription agreement is predominantly associated with the purchase of cooperative properties. This document serves as an agreement where a potential shareholder agrees to buy shares in a cooperative corporation, which in turn grants them the right to occupy a particular unit within the building. In the context of cooperatives, residents do not own their individual units outright; instead, they own shares in the corporation that owns the property. Thus, the subscription agreement is essential to establish the relationship between the buyer and the cooperative entity.

In contrast, condominiums, single-family homes, and townhouses each involve different ownership structures, typically involving direct ownership of the individual units or properties. While condominiums have a similar communal living aspect, they operate under a different legal framework, and the agreements involved do not typically fall under the term "subscription agreement." Therefore, understanding the nature of cooperative ownership clarifies why the subscription agreement is specifically relevant to that type of property.