In what type of property does each owner have a separate interest in their unit and an undivided interest in the common areas?

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In a condominium, each owner possesses a separate interest in their individual unit, which means they have ownership rights to their specific living space. In addition to this, they also hold an undivided interest in the common areas of the property, such as hallways, gyms, pools, and gardens, which are shared among all unit owners. This legal structure allows for both personal ownership and a shared responsibility for maintenance and management of the communal spaces, reflecting the nature of condominium living.

In contrast, a cooperative involves ownership of shares in a corporation that owns the property, meaning owners do not have individual titles to their units. Shared rental typically involves renting arrangements without individual ownership, and a single-family home represents full ownership without the shared interest component found in condominiums. Therefore, the structure of a condominium clearly distinguishes it as the correct choice.