Definition of Cooperative Housing Society
The cooperative which is established with a view to mitigating the accommodation problems of the members of the cooperative society is called cooperative housing society. In the present age, the extreme accommodation crisis is created by urban-based people; this cooperative is established to overcome this crisis. In this case, lands are purchased in the name of cooperative by the savings money of the members. Thereafter the cooperative makes the house and allotted these houses among the members by the installment process under the conditions of the payment of particular time in the protector price. Members can be the owner of these houses after paying the payment. Especially this cooperative society gives the loan for the members to be the owner of the house in the urban area.
The corporation is membership-based, with membership granted by way of a share purchase in the cooperative. Each shareholder in the legal entity is granted the right to occupy one housing unit. A primary advantage of the housing cooperative is the pooling of the members’ resources so that their buying power is leveraged, thus lowering the cost per member in all the services and products associated with home ownership.