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.
Minnesota Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that pertains to the transfer of property rights and membership in a corporation in the state of Minnesota. This document is essential when an individual or entity wishes to assign their proprietary lease and become a member of a corporation. In Minnesota, there may be different types of Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership based on specific circumstances. Some of these variations may include: 1. Residential Property: This type of consent document is commonly used when a residential property is involved. It allows the corporation to acknowledge the assignment of the proprietary lease and the transfer of membership from one party to another. This is typically applicable when a tenant wants to transfer their rights and responsibilities to a new tenant or owner. 2. Commercial Property: For commercial properties, a specific Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership may be required. It serves the same purpose as the residential version but focuses on commercial leases and the transfer of ownership or tenancy rights within the corporation. 3. Condominiums: in cases where condominiums are involved, a unique Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is needed. This type of consent highlights the assignment of proprietary lease and membership transfer in condominium associations, ensuring that all parties — the original owner, the assignee, and the corporation — are in agreement. The Minnesota Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership document typically includes various sections. These sections may cover details such as the names and addresses of the assignor (current owner/tenant), assignee (new owner/tenant), and corporation, as well as the date of the assignment. It may also outline any relevant terms and conditions, including any fees, approvals, or restrictions associated with the transfer. These consent documents are crucial for upholding the legal rights and obligations of all parties involved in the transfer of proprietary leases and membership in a corporation. They ensure that the transfer is done in compliance with Minnesota laws and regulations while maintaining the interests and responsibilities of all parties concerned. If you are planning to assign a proprietary lease or become a member of a corporation in Minnesota, consulting with a legal professional is highly recommended. They can provide appropriate guidance and help you prepare the necessary Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership document specific to your situation.
