How would one describe their interest in a cooperative unit?

The correct choice is that one would describe their interest in a cooperative unit as a leasehold estate. In a cooperative housing arrangement, individuals do not own their individual units; instead, they own shares in a corporation that owns the entire building. This structure means that residents have a lease for their unit which grants them the right to occupy it, making their interest a leasehold rather than ownership in the traditional sense.

Leasehold estates are characterized by the right to use and occupy the property for a specified period under the terms of a lease. In the case of cooperatives, shareholders typically pay a monthly maintenance fee to cover property expenses, taxes, and sometimes mortgage payments on the entire building, but they do not have direct ownership of the property.

The other options represent different forms of property interest. A freehold estate implies full ownership of real property with rights that extend indefinitely, which does not apply to cooperative units. Equity ownership refers to holding an interest in property, commonly found in condominiums where individuals own their specific unit and a shared interest in common areas. Finally, condo ownership specifies a property type distinct from cooperatives, where individuals possess their units outright rather than through shares in a corporation.