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 Hawaii Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that governs the transfer of lease and membership rights within a corporation. This consent is essential when a member of a Hawaii corporation wishes to assign their proprietary lease agreement and their membership interest to another party. A proprietary lease is an agreement that allows a corporation member to occupy a specific unit within a co-operative or time-share development. By obtaining the Consent of Corporation, the member is permitted to transfer their lease and membership rights to a new individual or entity. There are various types of Hawaii Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership, including: 1. Individual Assignment: This type of consent is used when a single member of the corporation intends to assign their proprietary lease and membership to another individual, such as a family member, friend, or business partner. 2. Corporate Assignment: In certain cases, a member of the corporation might be a business entity. In such situations, this consent is required when the corporation itself wishes to assign the proprietary lease and membership to another corporation or entity. 3. Sublease Assignment: When a member desires to sublease their unit within the co-operative or time-share development to a third party, this type of consent is necessary. It grants permission for the member to transfer their lease and membership rights temporarily. The consent is usually obtained by submitting an application to the corporation's board of directors or a designated committee. It typically includes information about the assigning member, the new member or entity, the terms of the assignment, and any relevant fees or dues associated with the transfer. The board or committee evaluates the application and grants the consent if all requirements are met. In conclusion, the Hawaii Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a critical legal document for transferring lease and membership rights within a corporation. It ensures that the assigned party complies with the corporation's rules and regulations, allowing for a smooth transition of ownership or occupancy.
