Direct answer
What does Proprietary lease mean?
The lease issued by a cooperative corporation that gives a shareholder the right to occupy a particular apartment under its terms.
Exam cue: The shareholder's occupancy right depends on both the shares and the proprietary lease.
What does it look like in a question?
New York example
A co-op buyer closes on shares and the related proprietary lease for unit 4B.
Common exam trap
What should you not confuse it with?
It is not an ordinary market-rate lease from an unrelated landlord.
Related condominiums and cooperatives terms
Board packageThe application materials a prospective cooperative purchaser or subtenant submits for board review under the cooperative's procedures.Common chargesAmounts assessed against condominium unit owners for common expenses under the governing documents and budget.Common elementsThe parts of a condominium property owned collectively by unit owners rather than as part of one unit.CondominiumA form of ownership in which a person owns an individual unit and an undivided interest in common elements.CondopA property structure that combines a condominium framework with a cooperative component, often through separately owned condominium units.CooperativeA housing arrangement in which a corporation owns the real property and occupants own shares tied to proprietary leases.
Sources used1 reference with section locators
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