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.
New York Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document used in the state of New York to transfer the rights and responsibilities of a proprietary lease to a new tenant and to obtain approval for the transfer of a membership interest in a cooperative corporation. This document ensures that the assignee or new tenant is suitable and complies with the requirements set by the cooperative corporation. There are various types of New York Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership, depending on the specific circumstances and requirements of the cooperative corporation. Some common types include: 1. Individual Assignment: This type of consent is used when an individual tenant wishes to assign their proprietary lease to another individual. The cooperative corporation reviews the proposed assignee's financial stability, creditworthiness, and ability to comply with the corporation's rules and regulations. 2. Corporate Assignment: This type of consent is required when a corporate entity desires to assume the rights and obligations of a proprietary lease. The cooperative corporation evaluates the company's financial status, assets, and overall suitability to be a tenant in the building. 3. Family Transfer: In certain situations, cooperative corporations permit the transfer of a proprietary lease to a family member, such as a spouse, child, or parent. This type of consent allows the transfer of the lease within the family unit without extensive scrutiny. The New York Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership typically includes key details such as the current tenant's name, the proposed assignee's name, contact information, and relevant personal details. Additionally, it outlines the terms and conditions of the assignment, including any restrictions imposed by the cooperative corporation. It is crucial to note that cooperative corporations in New York have their own unique guidelines and requirements for consents of assignment and membership transfers. These guidelines often include financial thresholds, background checks, and interviews with prospective assignees or tenants. Therefore, it is essential for both the current tenant and the proposed assignee to thoroughly understand and comply with these regulations to ensure a smooth and legally sound transfer process. In summary, the New York Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a vital legal document used in cooperative corporations to facilitate the transfer of proprietary lease rights and membership interests. Understanding the specific requirements and guidelines set forth by the cooperative corporation is crucial for a successful transfer of lease and membership.
