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 Michigan Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document that outlines the terms and conditions for transferring the ownership of a cooperative apartment and membership within a cooperative housing corporation. This agreement is specific to the state of Michigan and ensures a smooth and legal transfer of property rights. Keywords: Michigan, Agreement to Assign, Proprietary Lease, Cooperative Apartment, Membership, legal document, terms and conditions, transferring ownership, cooperative housing corporation, transfer of property rights. There are several types of Michigan Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership, which include: 1. Standard Assignment Agreement: This is the most common type of agreement used when transferring the ownership of a cooperative apartment and membership in Michigan. It includes the essential clauses and provisions necessary for the assignment process. 2. Assignment Agreement with Conditions: In some cases, additional conditions may be involved in the transfer of ownership, such as specific repairs or renovations that need to be completed before the assignment is finalized. This type of agreement includes such conditions and outlines the responsibilities of both parties. 3. Assignment Agreement with Limited Membership Transfer: Occasionally, the cooperative housing corporation may have limitations on the transfer of membership, such as a maximum percentage of units that can be owned by one individual or entity. This type of agreement includes clauses addressing these limitations. 4. Assignment Agreement with Lease Transfer: An assignment agreement may also include the transfer of an existing lease agreement from the original owner to the assignee. This ensures that the new owner assumes the rights and obligations established in the lease. 5. Assignment Agreement with Purchase Option: In certain cases, an assignment agreement may include a purchase option, allowing the assignee to exercise the right to buy the cooperative apartment in the future. This type of agreement outlines the terms and conditions of the purchase option. To ensure the validity and legality of the transfer, it is essential to consult with legal professionals familiar with Michigan's real estate laws and regulations when drafting or executing an Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership.
