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.
Montana Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that grants permission for the transfer of ownership and membership rights within a corporation regarding a proprietary lease. This consent is required to ensure a smooth and lawful transition of such rights. In Montana, there may be various types of Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership documents, including: 1. Residential Property Consent: This type of consent is specific to residential properties governed by a corporation, such as condominiums or residential cooperatives. It allows for the assignment of a proprietary lease to a new owner while obtaining the corporation's approval for the transfer of membership rights. 2. Commercial Property Consent: This type of consent applies to commercial properties that operate under a corporate governing structure. It permits the assignment of a proprietary lease to new parties involved in the ownership and business operations, while ensuring the corporation's consent to the transfer of membership rights. 3. Vacation Property Consent: Some corporations in Montana manage vacation properties like time-shares or resort condominiums. Consent specific to this type of property allows for the assignment of proprietary leases and membership rights to individuals desiring temporary ownership and usage of such properties. The Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership document serves as a legal safeguard to protect the interests and financial stability of the corporation. It typically includes the following key elements: 1. Identification of Parties: The document identifies the assigning party (the current leaseholder), the assignee (the proposed new leaseholder), and the corporation granting consent. 2. Property Description: This section includes a detailed description of the property being assigned, such as its physical address, legal description, and other relevant identifiers. 3. Assignment Terms: The terms of the assignment and transfer of the proprietary lease and membership rights are stated, outlining the responsibilities of both the assignor and assignee. These terms may include any conditions, restrictions, or limitations on the transfer. 4. Corporation's Consent: The document explicitly records the corporation's consent to the assignment of the proprietary lease and the transfer of membership rights. This is essential to ensure that the assignee becomes a recognized member of the corporation. 5. Execution and Notarization: The document requires the signatures of the assigning party, assignee, and a representative of the corporation. Notarization may also be necessary to validate the document. It is crucial to consult with legal professionals to draft and execute the specific Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership document tailored to the unique requirements of Montana law and the corporation in question.
