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.
The Arizona Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that solidifies the corporation's approval for the transfer of a proprietary lease and the consent to membership in a particular property or housing community. This document is crucial in situations where a tenant wishes to assign their lease to another party and also become a member of the corporation managing the property. In essence, the Consent of Corporation serves as an acknowledgment from the corporation that they are aware of and approve the assignment of the lease and the new membership. It ensures that the new tenant's rights and responsibilities will be recognized and upheld by the corporation going forward. The Arizona Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is designed to facilitate transparency, security, and adherence to established protocols. By obtaining this consent, both parties involved in the lease assignment can proceed with confidence, knowing that all necessary parties are aware of and support the transaction. Different types of Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership in Arizona may include variations specific to different property types, corporate structures, or housing communities. While the general purpose of the document remains the same, individual corporations might have specific requirements or stipulations in their consent forms. These variations could pertain to apartment buildings, condominiums, cooperative housing, or even commercial properties. Keywords: Arizona, Consent of Corporation, Assignment of Proprietary Lease, Consent to Membership, legal document, transfer of lease, housing community, member, tenant, property management, corporation, transparency, security, protocols, rights, responsibilities, lease assignment, transaction.
