When a person purchases an apartment in a stock cooperative (coop), in addition to a share in the corporation, they acquire the right to occupy an apartment or unit owned by the corporation. This is an exclusive right. This is accomplished by means of a proprietary lease, also known as an occupancy agreement. Unlike a lease, which gives a tenant the right to occupy an apartment for a specific period of time, a proprietary lease gives a shareholder the right to occupy a certa in apartment or unit as long as they own a share of stock in the corporation that owns the building. A proprietary lease generally includes the following: (1) Who has the right to occupy the apartment, (2) house rules, (3) whether the apartment can be sublet, (4) who is responsible for maintenance and repairs, (5) what constitutes a default under the lease, and (6) How and under what conditions may a shareholder sell his or her shares in the corporation.

Management of Stock Cooperatives (Co-op Housing)

Pros and Cons of Purchasing a Stock Co-operative

Tenant in Common (TIC) Housing

For All New Board Members