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 New Jersey Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document commonly used in the real estate industry. This document is typically utilized when a shareholder of a cooperative corporation in New Jersey wishes to transfer their proprietary lease rights to a new individual, along with their membership interest in the corporation. This consent is essential as it ensures that the corporation, as well as other shareholders, have the opportunity to review and approve the assignment of the proprietary lease and membership interest. It protects the corporation's interests and helps maintain the harmony and integrity of the cooperative community. Key elements typically covered in the New Jersey Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership include the following: 1. Shareholder Information: This section records the details of the shareholder assigning their lease and membership. It includes their full name, address, contact information, and the number of shares they currently hold in the corporation. 2. Prospective Assignee Information: Here, the document captures the information of the individual or entity seeking to become the new shareholder. This includes their full name, address, contact details, and any business affiliations if applicable. 3. Terms and Conditions of Transfer: This section outlines the terms and conditions of the proposed transfer. It may include details such as the sale price (if any), any restrictions or limitations on the assignment, and any required approvals or assessments. 4. Corporation Consent: The consent of the corporation is explicitly granted in this section, indicating their approval of the proposed assignment of the proprietary lease and membership. It may include the date of approval and the signature of an authorized representative of the corporation. Different types or variations of the New Jersey Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership may exist depending on the specific requirements of the cooperative corporation. Some common variations include: 1. Individual Assignment: This type involves the transfer of a proprietary lease and membership from one individual shareholder to another. 2. Corporate Assignment: In certain cases, the transferring shareholder may be a corporation or other legal entity seeking to assign their lease and membership to another entity. 3. Family Transfer: This variation occurs when the transfer is taking place within the same family, such as from a parent to a child or between siblings. It may have specific terms and conditions unique to familial relationships. 4. Restrictive Transfers: Some corporations may enforce restrictions on transfers, such as requiring board approval, conducting background checks, or limiting the number of shares owned by one individual or entity. In conclusion, the New Jersey Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a crucial legal document in cooperative real estate transactions. It protects the interests of the corporation and shareholders while allowing for the smooth transfer of proprietary lease rights and membership. Various types or variations of this consent document may exist based on specific circumstances and requirements.
