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.
In Missouri, the Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that plays a crucial role in the real estate sphere. Specifically, this document grants consent by a corporation to transfer its proprietary lease and membership rights to another party. To provide a better understanding, let's delve into the details of this significant legal instrument. Keywords: Missouri, Consent of Corporation, Assignment, Proprietary Lease, Membership, Transfer, Legal Document. The Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is primarily utilized in the context of cooperative housing corporations, where ownership is structured differently from traditional homeownership or condominium associations. In such cooperative housing communities, individuals own shares in a corporation that, in turn, grants them the exclusive right to occupy a specific unit under a proprietary lease. This legal document is necessary when a shareholder of a cooperative housing corporation intends to assign or transfer their proprietary lease rights and membership to another individual or entity, commonly known as the "Assignee." However, before the assignment can take place, the consent of the corporation must be obtained through this specialized agreement. The Missouri Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership document outlines several crucial details. First, it identifies the parties involved: the original shareholder (Assignor), the prospective transferee (Assignee), and the corporation itself. It provides ample space to record the names, addresses, and contact information of each party. Furthermore, the Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership document precisely mentions the details of the proprietary lease being transferred. It encompasses information such as the unit number, designated common area rights, and any unique conditions or restrictions associated with the proprietary lease. In Missouri, different types or variations of the Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership may exist based on specific circumstances or the unique requirements of cooperative housing corporations. Some common types include: 1. Commercial Cooperative Assignment: This type of consent is used when a shareholder within a commercial cooperative housing corporation wishes to assign their proprietary lease and membership rights for commercial purposes. It may involve transferring business-related proprietary leases, such as office spaces, retail units, or other commercial properties. 2. Residential Cooperative Assignment: Residential cooperative housing corporations often require a specific Consent of Corporation document tailored to the transfer of proprietary leases and memberships relating to residential units. This type of assignment commonly occurs when individuals sell their cooperative apartments to another party. 3. Amendment or Addendum: In certain cases, an amendment or addendum to the Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership may be required. This is usually necessary to reflect any changes, supplementary provisions, or modifications made during the assignment process, ensuring transparency and clarity for all involved parties. It's important to consider that the specific variations or types of the Consent of Corporation may vary depending on the cooperative housing corporation's bylaws, guidelines, or legal requirements. Consequently, it is advisable to consult with an attorney or seek legal counsel to ensure the document accurately complies with the laws and regulations of Missouri and the specific cooperative housing corporation in question.
