An apartment cooperative will typically involved a corporation renting apartments to people who are also owners of stock in the corporation. The apartment complex is owned by the corporation.
Two basic documents are ordinarily involved in the transfer of a member's or stockholder's interest in a cooperative apartment corporation: (1) an agreement for the purchase and sale of the proprietary lease and the appurtenant membership or stock; and (2) the instrument of assignment.
The agreement of purchase and sale is similar in format to an agreement for the sale of real property. The seller agrees to assign all rights under the proprietary lease covering the unit, and to sell the membership or stock in the corporation. The seller also agrees to procure the consent of the corporation to the transfer if this is required in the proprietary lease. The purchaser agrees to pay the purchase price and to submit references to the corporation and otherwise cooperate in procuring its consent to the transfer, and also promises to execute an agreement in a form approved by the corporation by which the purchaser assumes and agrees to be bound by all covenants and conditions of the proprietary lease.
The instrument of assignment does not differ materially from an ordinary assignment of a lease of real property, except that the assignor's interest in the membership or stock in the corporation is assigned together with interests under the proprietary lease. Ordinarily, the assignor declares that there are no liens or other claims outstanding against the lease or the shares to be assigned, that there are no undischarged bankruptcy proceedings or unsatisfied judgments or tax liens outstanding against the assignor, and that the assignor has full right and authority to assign the lease and shares.
Title: Alaska Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership: A Comprehensive Overview Introduction: Alaska Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that allows corporations to grant consent for the assignment of a proprietary lease and membership within their organization. This article provides a detailed description of what this consent entails, its significance, and the various types of consent associated with this document. What is Alaska Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership? The Alaska Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a formal agreement where a corporation gives its approval to transfer or assign a proprietary lease on a property owned by the corporation. Additionally, it grants consent to admit a new member into the corporation, thereby authorizing their participation in the organization's affairs. Importance and Legal Considerations: This consent is essential in Alaska because it ensures a transparent and legally compliant process for transferring a proprietary lease and changing the membership structure of a corporation. It establishes the corporation's willingness to accept and recognize the new leaseholder and member, protecting the interests of both parties involved. Types of Alaska Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership: 1. Standard Consent: This type of consent is used when a corporation agrees to the assignment of a proprietary lease and the addition of a new member without any additional conditions or modifications. 2. Conditional Consent: In some cases, a corporation may grant consent subject to certain conditions that must be met before the assignment of the proprietary lease or admission of the new member is finalized. These conditions may include financial obligations, background checks, or compliance with specific corporation rules and regulations. 3. Limited Consent: This form of consent restricts the transfer of a proprietary lease or admission of a member to a designated period or specific circumstances. It may be used when the corporation prefers temporary arrangements or when limited availability of membership positions dictates controlled admission. Conclusion: The Alaska Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a crucial legal document that governs the transfer of proprietary leases and membership changes within corporations. It ensures transparency, protects the interests of the corporation and involved parties, and maintains the integrity of the corporation's membership structure. By understanding the different types of consent that can be granted, individuals and corporations can navigate the process effectively and fulfill their legal obligations.
