Chapter 1 Architectural Styles 25
The stockholders have the right to approve
decisions that protect the interests of the corpo-
ration. A board of directors is formed to repre-
sent the majority.
Some disadvantages of a co-op may include
excessive record keeping, a longer process for
decision making, and confl icts between share-
holders. Some co-ops do not allow shareholders
to gain equity in their investment, resulting in
less incentive to invest additional capital. The
success of a co-op depends on participation.
All members must abide by the wishes of the
majority. However, if the members of the co-op
collectively make a bad decision, all of the
members are affected.
Condominium
A condominium is similar to a co-op in that
it is a type of ownership. However, unlike the
owner of a unit in a cooperative, who buys stock
in a corporation, the owner of a condominium
buys the unit and a share of the common
ground. See Figure 1-30. The owner receives a
deed to the unit and pays taxes on it. Owners of
condominium units have a shared interest in all
the common property and facilities. Common
Cooperative
The term cooperative, or co-op, refers to a
type of ownership, rather than a type of building.
The building is owned and operated by a cor-
poration. Each family’s living space is called a
unit. Each buyer purchases stock in the corpo-
ration to become a shareholder. In return, each
shareholder receives a lease that grants the
shareholder the right to occupy the unit’s space.
The unit’s value determines the purchase price
of the stock. See Figure 1-29.
Since members own a share of the corpo-
ration, they do not pay rent. They do, however,
pay a monthly fee that is proportionate to what
the corporation pays to manage and operate the
building. The corporation uses the money to pay
mortgage payments, property taxes, insurance,
utilities, management fees, reserved funds,
maintenance, and repairs.
The main advantage of co-op ownership is
affordability. Co-op ownership requires lower
down payments and lower closing costs, and often
offers longer mortgage terms. Co-ops combine
the advantages of home ownership with the con-
venience of apartment living. Another advantage
of co-op ownership is community control. Each
stockholder has a voice in running the co-op.
Goodheart-Willcox Publisher
Figure 1-28. Architects today combine styles of the past with new features and designs to meet the needs of
their clients.
Copyright Goodheart-Willcox Co., Inc.