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.
Title: Minnesota Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership Keywords: Minnesota, Agreement, Assign, Proprietary Lease, Cooperative Apartment, Membership Introduction: The Minnesota Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership provides a comprehensive legal framework for individuals or entities involved in the transfer or assignment of rights and obligations associated with a cooperative apartment and its membership. This document ensures a smooth and legally binding transfer process in compliance with Minnesota state laws. Different types of Minnesota Agreements to Assign Proprietary Lease of Cooperative Apartment and Membership may vary based on specific terms and conditions agreed upon by the parties involved. 1. Purpose and Scope: This Agreement establishes the terms and conditions under which a cooperative apartment's proprietary lease and membership can be assigned or transferred from the assigning party (Assignor) to the receiving party (Assignee). This legal instrument aims to protect the rights and obligations of both parties throughout the assignment process. 2. Definitions: — Cooperative Apartment: Refers to a type of multi-unit living arrangement where residents collectively own shares in a corporation that owns the building. Each resident obtains the right to occupy a specific unit through a proprietary lease. — Proprietary Lease: The legal document that grants the resident the right to occupy and use a specific unit in a cooperative apartment building. — Membership: The ownership share or interest held by an individual or entity in the cooperative corporation that owns the building and its common areas. — Assignor: The party currently holding the proprietary lease and membership, intending to transfer their rights and obligations. — Assignee: The party who will receive and assume the proprietary lease and membership from the Assignor. 3. Required Information: The Agreement should include the following information: — Full legal names and contact details of both the Assignor and the Assignee. — Details of the cooperative apartment, such as its address, unit number, and any specific conditions. — A detailed description of the proprietary lease being assigned, including lease duration, terms, and any restrictions or limitations. — Information regarding the membership being transferred, such as the number of shares held and any voting rights associated with the membership. — Consideration for the assignment, including the purchase price (if applicable) and payment terms. 4. Assignment Process: The Agreement outlines the step-by-step process of assigning the proprietary lease and membership: — Offer and Acceptance: The Assignee presents an offer to the Assignor, who can accept or negotiate the terms. — Due Diligence: Both parties conduct a thorough examination of the cooperative apartment's financials, legal documents, and governing rules and regulations. — Board Approval: If required by the cooperative association, the Assignee must seek approval from the board of directors or the membership to assume the lease and membership. — Execution of Assignment: Once all conditions are satisfied and approvals obtained, the Assignment Agreement is signed, and ownership rights are officially transferred. — Compliance and Notifications: The Assignor shall notify the cooperative association, required authorities, and any relevant stakeholders of the assignment. Different Types: While the specific types of Minnesota Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership may vary based on the parties' specific requirements, the main variations may include Assignment Agreements for: 1. Full transfer of proprietary lease and membership. 2. Partial transfer of proprietary lease and membership. 3. Assignment with purchase: When the Assignee pays a purchase price to the Assignor for the assignment. 4. Assignment without purchase: When the Assignor relinquishes their rights without financial compensation. Conclusion: The Minnesota Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a vital legal instrument ensuring a smooth and lawful transfer of rights and obligations associated with cooperative apartments. By adhering to this Agreement, both Assignor and Assignee can safeguard their interests while complying with Minnesota's legal requirements governing cooperative housing arrangements.
