Closings glossary
Proprietary lease
The occupancy lease a co-op corporation grants a shareholder for a specific unit. It is assigned at closing together with the stock certificate for the allocated shares.
What is a proprietary lease in a co-op?
Quick Answer
The full definition
The occupancy lease a co-op corporation grants a shareholder for a specific unit. It is assigned at closing together with the stock certificate for the allocated shares.
Where does proprietary lease come up in a New York City closing?
A Sunnyside co-op closing transfers 285 shares and the proprietary lease for apartment 4C, with no deed and nothing recorded in ACRIS.
What else should you read before closing?
In the glossary
- Stock certificate (co-op)The certificate evidencing the shares allocated to a co-op apartment. Shares and the proprietary lease travel together and cannot be sold separatel...
- Aztech recognition agreementThe agreement in which a co-op corporation acknowledges a lender's security interest in a shareholder's shares and proprietary lease. The Aztech fo...
- Maintenance (co-op)The monthly charge a co-op levies on each shareholder, covering building operations plus that shareholder's share of real estate taxes and the unde...
- Co-op lien searchThe search performed on a co-op purchase covering UCC filings, judgments, liens and unpaid building charges tied to the shares and to the selling s...
- Offering planThe sponsor's filed disclosure document for a co-op or condominium, carrying its budget, share or common interest allocation, building rules and sp...
Questions this raises
Building types
- Standard co-opThe ordinary New York City cooperative: you buy shares in a corporation and receive a proprietary lease to occupy a specific apartment.
- HDFC co-opAn affordable cooperative formed under Article XI of the Private Housing Finance Law, with income caps on purchasers and usually a restricted resal...
- CondopA building split into two condominium units, one commercial and one residential, where the residential unit is owned by a cooperative corporation.
- Land-lease co-opA cooperative that owns its building but leases the ground beneath it from a separate landowner, on a lease with a reset schedule and an expiry date.
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