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 Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that pertains to the transfer of a proprietary lease and the granting of membership in an entity registered in Delaware. This consent acknowledges the corporation's formal approval and acceptance of the transfer, ensuring compliance with the applicable laws and regulations. The primary purpose of the Delaware Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is to safeguard the corporation's interests and maintain control over its membership and lease arrangements. By requiring this consent, the corporation can ensure the eligibility of the assignee and the alignment of their goals and values with the corporation's mission. A few essential keywords related to Delaware Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership are: 1. Consent: This document reflects the corporation's permission and acceptance of the transfer of a proprietary lease and approval of the membership. 2. Corporation: Refers to the legal entity that holds ownership or control over the property associated with the proprietary lease. It can be a business entity, nonprofit organization, or any other registered corporation in Delaware. 3. Assignment: Implies the legal transfer of rights, obligations, and interests from the assignor (current leaseholder/member) to the assignee (new leaseholder/member). 4. Proprietary Lease: Denotes a lease contract granting exclusive rights and possession of a specific property or unit within a corporation's real estate holdings. 5. Membership: Refers to the formal association with the corporation, allowing the member to enjoy certain rights, benefits, and participation in decision-making processes. 6. Legal Compliance: Recognizes the requirement for adherence to Delaware state laws, regulations, and any governing documents of the corporation. 7. Transfer Approval: Indicates that the corporation has reviewed the assignee's qualifications, financial stability, legal capacity, and other relevant factors before granting consent. 8. Reserved Rights: Ensures that the corporation retains specific rights and privileges, such as the ability to alter terms of the lease, terminate membership, or make amendments to the relevant agreements. It is important to note that while there may be slight variations based on specific circumstances or corporate bylaws, the essential elements and purpose remain consistent in most Delaware Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership documents.
