Deciding to live in a co-op in Michigan means adjusting to a new kind of housing arrangement. Co-ops are not at all the same thing as an apartment or condo. They have very different rules and regulations that must be adapted to. The rules are much stricter on average. You do get a greater say in how the building is run.
Understanding ownership shares in a co-op
The first principle of cooperative housing law is that no one party owns the building. Instead, the unit that you live in is set up in much the same manner as a corporation. The analogy even goes so far as to include a board of co-op directors. Each person that lives in the building is called a shareholder.
You should also note that moving into a co-op does not require you to sign any kind of deed. You instead purchase shares of the co-op corporation. Your shares will entitle you to hold a lease that grants the use of a specific unit within the building. The total amount of shares may be based on the size of this unit.
Living in a co-op brings certain advantages
Becoming a shareholder in this type of housing entitles you to a voice when it comes to deciding certain key issues. This includes being granted voting rights on building fees, spaces held in common, and any renovations that may need to take place. You may also have a say in choosing which new applicants get to live in the building.
For many, living in a co-op is more affordable than a condo or single-family home. It is true that it may take some level of adjustment to new rules. If you can afford it, this may be the perfect arrangement for your needs.