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.
The North Carolina Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that authorizes the transfer of a proprietary lease and membership interest in a corporation. This consent is essential when a member wishes to assign their rights and responsibilities to another party. The consent form outlines the process by which the corporation grants approval for the assignment of the proprietary lease and the transfer of membership. It ensures that the corporation's interests are protected and that the new member meets the required qualifications and obligations. In North Carolina, there are different types of Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership, catering to different scenarios and parties involved. These variations may include: 1. Individual Assignment: This consent form is used when a single individual wishes to assign their proprietary lease and transfer membership to another individual. It ensures that the new member is qualified and meets all requirements set by the corporation. 2. Corporate Assignment: In cases where a corporation holds the proprietary lease and membership, this type of consent form allows the corporation to transfer its rights and responsibilities to another corporation or business entity. It may involve additional legal considerations due to the complexities of corporate ownership. 3. Partnership Assignment: If a partnership holds the proprietary lease and membership in the corporation, this form authorizes the assignment of the lease and membership interest to another partnership. This type of consent ensures that the new partnership complies with the corporation's rules and regulations. Each variation of the Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership aims to protect the interests of both the corporation and the new member. It ensures that the transfer is conducted legally, with proper documentation and compliance with all applicable laws and regulations. Key aspects addressed in this document include the identification of the assigning party, the new member, and the terms and conditions of the assignment. It may require the assigning party to provide financial records, references, or other documentation evidencing their qualifications and ability to fulfill the obligations associated with the lease and membership. Overall, the North Carolina Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a crucial legal instrument that ensures the orderly transfer of proprietary rights and preserves the integrity and stability of the corporation as a whole.
