An occupancy agreement is commonly known as which document?

An occupancy agreement is commonly known as which document?

• A. Proprietary lease
• B. Covenants and restrictions (CC&Rs)
• C. By-laws
• D. Articles of incorporation

Answer: (A)

In a cooperative context, an occupancy agreement is the contract that gives a shareholder the right to occupy a specific unit and spells out the terms, responsibilities, and any fees. This document is commonly called a proprietary lease because, while it functions like a lease in granting occupancy, it is issued by the cooperative corporation to the shareholder and relates to owning shares rather than owning the unit outright. The other documents have different purposes: CC&Rs set the rules and restrictions for use; By-laws govern the association’s internal workings and governance; Articles of incorporation establish the legal entity itself.

In a cooperative context, an occupancy agreement is the contract that gives a shareholder the right to occupy a specific unit and spells out the terms, responsibilities, and any fees. This document is commonly called a proprietary lease because, while it functions like a lease in granting occupancy, it is issued by the cooperative corporation to the shareholder and relates to owning shares rather than owning the unit outright. The other documents have different purposes: CC&Rs set the rules and restrictions for use; By-laws govern the association’s internal workings and governance; Articles of incorporation establish the legal entity itself.