In a co-op real estate transaction, what does the buyer receive?

In a co-op real estate transaction, the buyer receives shares of stock in the cooperative corporation that owns the property, along with a proprietary lease for a specific unit within the building. This arrangement means that the buyer does not own real estate in the traditional sense but rather holds an ownership interest in the corporation, which in turn owns the property.

The shares of stock entitle the buyer to live in the unit and often come with the right to participate in the governance of the cooperative, including voting on important matters concerning the property. This unique structure differentiates co-ops from condos, where buyers typically receive a deed to their individual units. In the case of a lease for the unit, while buyers do receive this lease, it is tied to their ownership of shares. Therefore, the primary ownership document that defines their stake in the property is the stock certificate, making it the most accurate answer.