In a cooperative, what document grants the shareholder the right to occupy a specific apartment?

In a cooperative, what document grants the shareholder the right to occupy a specific apartment?

• A. Proprietary lease
• B. Deed
• C. Rental agreement
• D. Mortgage

Answer: (A)

In a cooperative, the right to live in a specific apartment is granted by a proprietary lease. The shareholder owns shares in the cooperative corporation and the proprietary lease gives them the right to occupy a designated unit, outlining terms, responsibilities, and duration. A deed isn’t used to grant occupancy in a co-op because ownership is of shares in the corporation, not a separate unit with a deed. A rental agreement would apply if you were renting from someone rather than owning shares in the cooperative, and a mortgage is simply the loan used to finance the purchase, not an occupancy right.

In a cooperative, the right to live in a specific apartment is granted by a proprietary lease. The shareholder owns shares in the cooperative corporation and the proprietary lease gives them the right to occupy a designated unit, outlining terms, responsibilities, and duration. A deed isn’t used to grant occupancy in a co-op because ownership is of shares in the corporation, not a separate unit with a deed. A rental agreement would apply if you were renting from someone rather than owning shares in the cooperative, and a mortgage is simply the loan used to finance the purchase, not an occupancy right.