What type of lease is provided exclusively to residents and stockholders in a cooperative?

The proprietary lease is specifically designed for residents and stockholders in a cooperative housing arrangement. In a cooperative, individuals do not own their units outright. Instead, they own shares in the corporation that owns the property and are granted a lease to occupy a unit within the building. This type of lease allows residents to have the right to use their living space in exchange for their investment in shares of the cooperative.

The proprietary lease outlines the rights and responsibilities of the shareholders as tenants, dictating terms such as maintenance obligations and the duration of occupancy. This arrangement is distinct from other lease types, which typically do not involve ownership shares. Understanding the proprietary lease’s unique role in the cooperative framework is essential for grasping how housing cooperatives operate compared to traditional property rental agreements.