Final answer:
Occupancy rights in a cooperative are conferred through a a) proprietary lease, which is a contractual agreement with the cooperative corporation, rather than by individual deeds or solely by the cooperative's bylaws or articles of incorporation.
Step-by-step explanation:
The rights of occupancy of an owner in a cooperative are based on a proprietary lease. In a housing cooperative, the cooperative owns the entire building or complex, and residents have the right to occupy their units based on the terms outlined in their proprietary leases. These leases are contractual agreements between the cooperative corporation and the shareholder, granting the right to occupy a specific unit.
Unlike condos, where individual deeds to each unit are given, in a cooperative, residents don't own their units outright but instead have shares in the cooperative corporation that come with occupancy rights. The articles of incorporation and bylaws of the association govern the cooperative as a whole, setting up how the cooperative is run, but they do not directly confer individual occupancy rights. These rights are explicitly detailed in the proprietary lease.
Understanding the legal framework for occupancy in a cooperative is crucial for potential residents and owners alike. It highlights the importance of contractual rights based on property rights, which enable individuals to enter into agreements regarding the use of property and offer legal recourse when necessary.