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 Illinois Agreement for Purchase and Sale of Rights to Cooperative Apartment is a legal document that outlines the terms and conditions for the transfer of rights to a cooperative apartment in the state of Illinois. This agreement serves as a binding contract between the buyer and seller, ensuring that both parties understand their obligations and responsibilities throughout the transaction. Keywords: Illinois Agreement for Purchase and Sale, cooperative apartment, legal document, transfer of rights, terms and conditions, binding contract, buyer and seller, obligations, responsibilities. In Illinois, there are different types of agreements for the purchase and sale of rights to cooperative apartments, tailored to various situations and preferences: 1. Standard Illinois Agreement for Purchase and Sale of Rights to Cooperative Apartment: This is the general agreement used for most cooperative apartment transactions in Illinois. It includes standard clauses and provisions that cover essential aspects such as the purchase price, closing date, and any contingencies or conditions associated with the sale. 2. Illinois Agreement for Purchase and Sale of Rights to Cooperative Apartment with Finance Contingency: This type of agreement includes specific clauses related to financing and mortgage contingencies. It outlines the buyer's right to terminate the agreement if they are unable to secure the necessary financing within a specified timeframe. 3. Illinois Agreement for Purchase and Sale of Rights to Cooperative Apartment with Inspection Contingency: This agreement adds an inspection contingency clause, allowing the buyer to conduct a professional property inspection before finalizing the purchase. If any significant issues or defects are identified during the inspection, the buyer may negotiate repairs or even withdraw from the agreement. 4. Illinois Agreement for Purchase and Sale of Rights to Cooperative Apartment for Cash Sale: This type of agreement is used when the buyer intends to purchase the cooperative apartment outright with cash, eliminating the need for financing contingencies. It typically includes accelerated timelines for closing and simplifies the contractual obligations related to financing. 5. Illinois Agreement for Purchase and Sale of Rights to Cooperative Apartment for Co-op Board Approval: In cooperative apartments, the co-op board has the authority to approve or reject potential buyers. This agreement includes clauses detailing the buyer's purchase being subject to obtaining approval from the co-op board. It outlines the necessary steps and provides a timeframe for the approval process. These different types of agreements for the purchase and sale of cooperative apartment rights in Illinois offer flexibility to accommodate the specific requirements and circumstances of both buyers and sellers. It is essential to consult with legal professionals and carefully review the chosen agreement to ensure compliance with Illinois laws and regulations.
