Co-ops & Condos
The lease agreement between a cooperative corporation and a shareholder-tenant, granting the right to occupy a specific unit.
In a cooperative, residents do not own their units outright. They own shares of stock in the cooperative corporation, which entitle them to a proprietary lease for a specific unit. The proprietary lease outlines the shareholder's rights and obligations: rent (maintenance payments), permitted uses, subletting rules, and board approval requirements. Unlike a standard lease, the proprietary lease has an indefinite term and is tied to stock ownership. The board can set restrictions on subletting and alterations.
Study Guide
Co-ops & Condos
Key concepts and exam tips →
Practice
NY Real Estate Co-ops and Condos
Free sample questions →
Preparing for the NY Real Estate Exam?
Unlocked covers Proprietary Lease and every other concept on the NY Real Estate Salesperson Exam — with study modules, practice questions, spaced-repetition flashcards, and Carl, your AI study buddy.
click for a haiku!