What legal document allows co-op shareholders to reside in their units?

The proprietary lease is the legal document that allows co-op shareholders to reside in their units. In a cooperative housing arrangement, shareholders do not own their individual units outright; instead, they own shares in a corporation that owns the entire property. The proprietary lease grants these shareholders the right to occupy a specific unit in the building. It outlines the terms under which the shareholder can use the unit, responsibilities for maintenance, and any rules that need to be followed within the co-op. This lease essentially defines the relationship between the shareholder and the cooperative, making it a fundamental component of co-op living.

Other documents such as ownership certificates, rental agreements, and occupancy licenses do not fulfill the same function. An ownership certificate simply verifies the shares a shareholder owns in the cooperative. A rental agreement typically applies to tenants in a rental property, and an occupancy license is more aligned with temporary permission to occupy a space rather than the long-term rights afforded by a proprietary lease in a co-op context.