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 Maryland Agreement for Purchase and Sale of Rights to Cooperative Apartment is a legally binding document that outlines the terms and conditions of the transaction between a buyer and a seller for the transfer of rights to a cooperative apartment in Maryland. This agreement serves as a contract, providing protection to both parties involved in the sale. Keywords: Maryland, Agreement, Purchase and Sale, Rights, Cooperative Apartment There are several types of Maryland Agreement for Purchase and Sale of Rights to Cooperative Apartment, including: 1. Standard Maryland Agreement for Purchase and Sale of Rights to Cooperative Apartment: This type of agreement is the most common and covers the typical terms and conditions for the sale of a cooperative apartment in Maryland. 2. Maryland Agreement for Purchase and Sale of Rights to Cooperative Apartment with Financing Contingency: Similar to the standard agreement, this type includes an added financing contingency, which allows the buyer to terminate the agreement if they are unable to secure the necessary financing for the purchase. 3. Maryland Agreement for Purchase and Sale of Rights to Cooperative Apartment with Inspection Contingency: This agreement includes a provision for a home inspection, giving the buyer the right to terminate the agreement if the inspection reveals any significant issues with the cooperative apartment. 4. Maryland Agreement for Purchase and Sale of Rights to Cooperative Apartment with Seller Financing: In cases where the seller offers financing options to the buyer, this type of agreement outlines the terms of the seller financing arrangement, including interest rates, repayment schedules, and any applicable penalties. 5. Maryland Agreement for Purchase and Sale of Rights to Cooperative Apartment with Multiple Contingencies: This type of agreement includes multiple contingencies, such as financing, inspection, and appraisal contingencies, offering the buyer more flexibility and protection throughout the buying process. In summary, the Maryland Agreement for Purchase and Sale of Rights to Cooperative Apartment is a legally binding contract that outlines the terms and conditions for the transfer of rights to a cooperative apartment in Maryland. It comes in various types to cater to different situations and contingencies that may arise during the buying process.
