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 Massachusetts Agreement for Purchase and Sale of Rights to Cooperative Apartment is a legal document used in the state of Massachusetts to outline the terms and conditions of the purchase and sale of a cooperative apartment. This agreement is specific to cooperative apartments, which differ from traditional condominiums or single-family homes and involve the sale of shares in a cooperative corporation. Keywords: Massachusetts, Agreement for Purchase and Sale, Rights to Cooperative Apartment, legal document, terms and conditions, purchase, sale, cooperative apartment, cooperative corporation. There might be various types of Massachusetts Agreement for Purchase and Sale of Rights to Cooperative Apartment, including: 1. Standard Massachusetts Agreement for Purchase and Sale of Rights to Cooperative Apartment: This is the typical agreement used for the purchase and sale of cooperative apartments in Massachusetts. It covers essential aspects such as the purchase price, financing terms, disclosure requirements, and contingency clauses. 2. Massachusetts Agreement for Purchase and Sale of Rights to Cooperative Apartment with Financing Contingency: This type of agreement is used when the purchaser intends to secure financing for the purchase of the cooperative apartment. It includes provisions that allow the buyer to cancel the agreement if they are unable to obtain suitable financing. 3. Massachusetts Agreement for Purchase and Sale of Rights to Cooperative Apartment with Inspection Contingency: In some cases, buyers may wish to have a professional inspection conducted before completing the purchase. This type of agreement allows buyers to include an inspection contingency, which allows them to cancel the agreement or request repairs if significant issues are discovered during the inspection process. 4. Massachusetts Agreement for Purchase and Sale of Rights to Cooperative Apartment with Co-op Approval Contingency: Cooperative apartments often require potential purchasers to go through a screening process conducted by the cooperative corporation's board. This agreement includes a contingency clause that makes the purchase contingent upon the buyer's successful approval by the cooperative corporation's board. 5. Massachusetts Agreement for Purchase and Sale of Rights to Cooperative Apartment with Seller Financing: Occasionally, sellers may offer financing options to prospective buyers of cooperative apartments. This agreement outlines the specifics of the seller financing arrangement, including interest rates, payment terms, and consequences for default. In summary, the Massachusetts Agreement for Purchase and Sale of Rights to Cooperative Apartment is a legal document used to formalize the purchase and sale of cooperative apartments in Massachusetts. Depending on the specific circumstances, there may be different types of agreements, each addressing particular contingencies or financing arrangements.
