With a cooperative, the transfer of ownership ______.

In a cooperative, the transfer of ownership typically requires board approval because cooperatives operate on a shared ownership model. When an individual wishes to sell their shares in a cooperative, the new buyer must generally be approved by the cooperative's board of directors. This process ensures that the new resident meets the financial and behavioral standards set by the cooperative community, which helps maintain harmony and uphold the cooperative's governing rules.

The requirement for board approval aligns with the nature of cooperatives, where decisions about new members significantly impact the community as a whole. This necessity for approval can help prevent issues that could arise from financial instability or undesirable behavior amongst residents.

While the transfer of ownership in a cooperative does not involve a direct transfer of real property—since shareholders own shares in the cooperative rather than the real estate itself—it's crucial that the governing body of the cooperative reviews potential new members to ensure they will integrate well into the existing community.

Although there may be other regulatory aspects regarding cooperatives, such as compliance with federal and state regulations, the direct requirement for board approval is a key characteristic of the ownership transfer process in cooperatives.