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.
California Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document used in California real estate transactions, particularly in the context of cooperative housing. This document is required when a shareholder wishes to transfer their proprietary leasehold interest in a cooperative corporation. The Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is an agreement between the transferring shareholder (assignor), the prospective assignee (transferee), the cooperative corporation, and its board of directors. Keywords relevant to this document include "California consent," "corporation assignment," "proprietary lease," and "membership transfer." In California, there may be several types of Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership documents, based on specific circumstances or variations in cooperative housing regulations. Some common variations may include: 1. Standard California Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership: This is the general form used in most cooperative housing transactions in California, where a shareholder wishes to transfer their leasehold interest to a new member. 2. Partial Assignment Consent: This document type is used when the transferring shareholder intends to assign only a portion of their proprietary leasehold interest, retaining some rights and responsibilities as a co-member. 3. Transfer with Conditions Consent: In certain cases, the cooperative corporation may allow assignment of the proprietary lease and consent to membership with specific conditions, such as payment of outstanding fees or adherence to certain rules. 4. Family/Marital Transfer Consent: This Consent type applies when a shareholder intends to transfer their proprietary leasehold interest to a family member or spouse, often subject to specific guidelines and regulations. The California Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership typically includes relevant details such as the names of the parties involved, the cooperative corporation's information, the terms and conditions of the assignment, consent from the corporation's board of directors, and any necessary attachments or disclosures. Overall, the Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a crucial legal document in California's cooperative housing sector, designed to regulate the transfer of proprietary leasehold interests while ensuring compliance with the cooperative corporation's policies and regulations.
