Property Ownership

A 'proprietary lease' in a New York City cooperative grants the shareholder:

AFee simple ownership of the apartment unit
BThe right to occupy a specific apartment unit in exchange for paying maintenance charges to the cooperative corporation✓ Correct
CA 99-year ground lease on the land beneath the building
DThe right to sublease the unit without board approval

Explanation

A proprietary lease in a NYC co-op grants the shareholder the right to occupy a specific apartment unit. In exchange, the shareholder pays monthly maintenance charges that cover the building's operating expenses, mortgage, and real estate taxes. The lease is 'proprietary' because it runs to the owner of the shares in the cooperative corporation.

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