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.
Maryland Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership serves as a legally binding document that outlines the transfer of rights and responsibilities associated with a cooperative apartment and its related membership. This agreement is crucial when an existing cooperative member wishes to assign their proprietary lease and membership to another party, ensuring a smooth and lawful transfer process. Keywords: Maryland, Agreement, Assign, Proprietary Lease, Cooperative Apartment, Membership There are several types of Maryland Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership that one may come across: 1. Standard Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership: This type of agreement typically includes all the essential details regarding the assignment, such as the names and addresses of all parties involved, the unique identification of the cooperative apartment, and the terms and conditions under which the assignment is being made. 2. Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership for Sale: This agreement is utilized when a cooperative apartment and its associated membership are being transferred in exchange for monetary consideration. It outlines the purchase price, payment terms, and any other financial arrangements involved in the sale. 3. Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership for Lease: In situations where a cooperative apartment and its membership are assigned to another party for a specific duration, this type of agreement is employed. It details the lease period, rental amount, and any other provisions related to the lease arrangement. 4. Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership for Family Transfer: This category of the agreement applies when a cooperative member wishes to assign their proprietary lease and membership to a family member, such as a spouse, child, or parent. It might include additional clauses ensuring that the transfer complies with any applicable family transfer provisions of the cooperative. 5. Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership for Corporate Transfer: When a cooperative member intends to assign their proprietary lease and membership to a corporation or another legal entity, this type of agreement specific to corporate transfers is employed. It may include provisions regarding the corporate entity's obligations and responsibilities as the assignee. It is crucial to consider individuals' specific circumstances and consult with legal professionals familiar with Maryland cooperative laws to determine the appropriate type of Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership required. The agreement should accurately reflect the intentions and obligations of all parties involved to ensure a smooth and legally compliant transfer process.
