In a co-op membership, the shareholder's exclusive right to live in a specific unit is established in what?

In a co-op membership, the shareholder's exclusive right to live in a specific unit is established through a proprietary lease. This legal document grants the shareholder the right to occupy a designated unit within the cooperative and lays out the terms of their tenancy. Unlike traditional leasing arrangements where a landlord-tenant relationship exists, a proprietary lease reflects the ownership structure of a co-op, where shareholders collectively own the property but have individual rights to specific units.

The proprietary lease not only defines the rights of the shareholder regarding occupancy but typically also includes regulations about the maintenance and use of the common areas, responsibilities for repairs, and guidelines for alterations made to the unit. This distinguishes it from other documents like rental agreements or lease contracts, which are more common in standard rental situations and do not pertain to the ownership context of a cooperative.

While a shareholder agreement outlines the terms and conditions for becoming a member of the cooperative and may address rights and obligations regarding shares, it does not directly confer the right to occupy a specific unit. Therefore, the proprietary lease is the specific document that establishes the exclusive right to live in a particular unit for shareholders in a co-op.