Proprietary Lease Law and Legal Definition

A proprietary lease is a lease given by a corporation to another. It is often used in a co-op context, where the owner is given a certain number of shares in the co-op, along with a proprietary lease for one of the residences in the building. In this manner, a stockholder in the co-op has a certain number of shares in the co-op, along with a lease to use one of the apartments under the conditions specified.