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 to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document used in the state of Illinois to establish the transfer of ownership and rights to a cooperative apartment unit. This agreement serves as a binding contract between the current shareholder or member of a cooperative housing corporation (the assignor) and the individual or entity receiving the assignment (the assignee). Keywords: Illinois, Agreement to Assign, Proprietary Lease, Cooperative Apartment, Membership, transfer of ownership, binding contract, shareholder, cooperative housing corporation, assignor, assignee. There are different types of Illinois Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership, and they may vary depending on specific circumstances or requirements. Some common types include: 1. Residential Cooperative Assignment: This type of agreement involves the transfer of ownership and membership in a residential cooperative apartment. It includes terms related to the assignment of shares, proprietary lease rights, and membership privileges. 2. Commercial Cooperative Assignment: This type of agreement applies to the transfer of ownership and membership in a commercial cooperative apartment. It includes provisions specific to commercial use, such as lease terms, operating agreements, and any restrictions relevant to the business being conducted. 3. Assignment of Proprietary Lease Only: In certain cases, an individual may only want to assign their proprietary lease rights in a cooperative apartment without transferring membership shares. This type of agreement solely focuses on the transfer of lease rights, preserving the original shareholder's membership. 4. Assignment of Membership Only: Similarly, an agreement may involve solely the assignment of membership shares in a cooperative housing corporation without transferring the proprietary lease. This type of agreement focuses on the transfer of ownership rights but maintains the assignor's lease obligations. 5. Partial Assignment: In situations where an assignor wishes to retain a partial ownership interest, a partial assignment agreement can be established. This allows the assignor to transfer a portion of their ownership interest while still maintaining control over another portion. Each type of Illinois Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership should specify essential details like the unit number, the date of assignment, the assignor's and assignee's names and contact information, the terms of the assignment, any conditions or restrictions, and the signatures of both parties involved. It is crucial to consult with legal professionals well-versed in Illinois real estate and cooperative laws to ensure the agreement conforms to all applicable regulations and protects the rights and interests of all parties involved.
