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The proprietary lease is a legal agreement between the co-op corporation and the resident, granting the resident the right to occupy a specific unit or apartment. What is a Proprietary Lease - Everything You Need to Know NY Rent Own Sell https://.nyrentownsell.com › blog › what-is-a-pro... NY Rent Own Sell https://.nyrentownsell.com › blog › what-is-a-pro...

What Is A Proprietary Lease? A proprietary lease is an agreement that grants shareholders in a co-op the right to live in a particular apartment space. Also known as occupancy agreements, proprietary leases stake out the rights and responsibilities of shareholders and the cooperative corporation's board of directors. Proprietary Leases Defined - Rocket Mortgage Rocket Mortgage https://.rocketmortgage.com › proprietary-lease Rocket Mortgage https://.rocketmortgage.com › proprietary-lease

Because when the proprietary lease expires, the co-op corporation will cease to exist, and the shares in the corporation (i.e. the mortgage collateral) will have zero value.” Now comes the wry kicker: “Banks are reluctant to underwrite mortgages where the collateral can be worthless.”

Consider the situation where there is a monetary default under the proprietary lease. Most proprietary leases provide that you can serve a 10-day notice to cure followed by a notice of termination. Once that occurs, you have effectively canceled the shares.

Homebuyers who buy a unit within a housing cooperative, or co-op for short, are purchasing shares in a corporation. When a buyer becomes a shareholder in a co-op, they are also granted a proprietary lease that gives them the legal right to occupy their particular unit within the co-op community.

Because when the proprietary lease expires, the co-op corporation will cease to exist, and the shares in the corporation (i.e. the mortgage collateral) will have zero value.” Now comes the wry kicker: “Banks are reluctant to underwrite mortgages where the collateral can be worthless.” All Co-op Proprietary Leases Have an Expiration Date. When is Yours? habitatmag.com https://.habitatmag.com › 2023-March › All-Co-op-... habitatmag.com https://.habitatmag.com › 2023-March › All-Co-op-...

What Is A Proprietary Lease? A proprietary lease is an agreement that grants shareholders in a co-op the right to live in a particular apartment space. Also known as occupancy agreements, proprietary leases stake out the rights and responsibilities of shareholders and the cooperative corporation's board of directors.