Which lease is granted by the corporation that owns a corporate apartment building?

• A. Escalated Lease
• B. Proprietary Lease
• C. Ground Lease
• D. Reappraisal Lease

Answer: (B)

A proprietary lease is the lease issued by the corporation that owns a cooperative apartment building to the shareholder-occupant. In a cooperative, residents don’t own their individual units outright; they own shares in the corporation that owns the building and receive a proprietary lease granting the right to occupy a specific apartment. This lease, created by the corporation, spells out your occupancy rights and responsibilities, along with the building’s rules and the associated maintenance obligations. The other terms don’t fit this scenario: an escalated lease describes rent that increases over time rather than occupancy rights in a co-op; a ground lease covers land ownership and a building on the land, not a cooperative unit; a reappraisal lease isn’t a standard form of residential tenancy. So the arrangement for a corporate-owned apartment building is best described by a proprietary lease.