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.
Delaware Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document that establishes the transfer of lease and membership rights in a cooperative apartment within the state of Delaware. This agreement serves as proof of the assignment of these rights between the assignor (current owner) and the assignee (new owner). The agreement outlines the essential terms and conditions agreed upon by both parties, ensuring a smooth and legal transition of ownership. It includes details such as the names, addresses, and contact information of the assignor and assignee, as well as the specific details of the cooperative apartment being transferred. In Delaware, there are various types of cooperative apartment agreements that can be assigned with unique terms and conditions. Some different types of Delaware Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership include: 1. Standard Assignment Agreement: This is the most common type, where the assignor transfers their proprietary lease and membership rights to the assignee, subject to compliance with the cooperative's rules and regulations. 2. Transfer of Shares Agreement: This agreement is specific to cooperatives that operate on a share-based ownership system. The assignor transfers a specific number of shares representing their ownership interest in the cooperative apartment to the assignee. 3. Leasehold Assignment Agreement: In cases where the cooperative apartment is held under a long-term lease, this agreement assigns the leasehold rights and membership, allowing the assignee to assume all responsibilities and benefits associated with the lease. 4. Limited Assignment Agreement: This type of agreement allows the assignor to assign only a portion of their proprietary lease and membership rights to the assignee, while retaining partial ownership and control over the cooperative apartment. Regardless of the specific type, the Delaware Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership covers critical aspects of the transfer, including the purchase price, any applicable fees, the effective date of the assignment, and any restrictions or conditions involved in the process. It is vital for both parties to review and understand the agreement thoroughly before signing to protect their rights and interests. Seeking legal advice is recommended to ensure compliance with Delaware laws and regulations.
