What type of lease is associated with cooperative apartment building ownership?

In the context of cooperative apartment building ownership, a proprietary lease is the correct type of lease associated with this arrangement. In a co-op, residents do not own their individual units outright; instead, they own shares in a corporation that owns the entire building. As a result, each shareholder is granted a proprietary lease for their apartment, outlining their rights to occupy and use the space. This lease typically includes stipulations regarding maintenance responsibilities, bylaws of the cooperative, and guidelines for alterations to the unit.

The proprietary lease distinguishes cooperative ownership from other forms of real estate, reinforcing the concept that ownership is linked to shares in the cooperative rather than direct ownership of the property itself. This unique structure leads to different legal implications and responsibilities compared to traditional leasing arrangements, which is critical for anyone involved in or studying real estate and property management.