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.
A North Carolina Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document that pertains to the transfer of the ownership rights and responsibilities of a cooperative apartment and membership within a cooperative housing corporation in North Carolina. This agreement establishes the terms and conditions for the assignment, including the rights, obligations, and liabilities of the assignor (current shareholder) and assignee (new shareholder). Key terms frequently associated with a North Carolina Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership include "cooperative apartment," "proprietorship," "assignment," "membership," and "cooperative housing corporation." Different types of North Carolina Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership may exist based on specific circumstances. These variations might include agreements for transferring partial ownership, temporary assignments, or assignments subject to specific conditions. Each type of agreement would have its own set of terms and requirements, addressing the unique aspects of the assignment or transfer. In summary, a North Carolina Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document that safeguards the interests of both parties involved in transferring the ownership rights and membership of a cooperative apartment. It is crucial to consult legal professionals and ensure the accuracy and compliance of this agreement to protect the rights and interests of all parties involved.
