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 Oregon Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document that outlines the transfer of rights and responsibilities between parties involved in a cooperative housing agreement. It is crucial to understand the key aspects of this agreement to protect both the assignor and the assignee. The agreement begins by clearly identifying the parties involved in the assignment, including the assignor (the current member of the cooperative) and the assignee (the new member who will be taking over the lease and membership rights). Next, the agreement specifies the cooperative apartment and its location, providing a detailed description of the unit, including its boundaries, amenities, and any additional storage spaces or parking facilities that may be included. The document outlines the terms and conditions of the assignment, including the effective date of the assignment and the duration or term of the proprietary lease. This includes any renewal options or termination clauses, ensuring that both parties are aware of the agreed-upon timeline. The agreement also includes provisions regarding the transfer of membership rights. This may involve the assignee becoming a member of the cooperative housing association, granting them the rights, privileges, and responsibilities set forth in the cooperative's bylaws and governance documents. Furthermore, the document addresses the financial aspects of the assignment. It outlines the financial obligations of both the assignor and the assignee, including any outstanding fees, assessments, or arrears to be settled prior to the assignment. Additionally, it may detail the terms for the assignee to assume any existing loans or mortgages associated with the cooperative apartment. The Oregon Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership may have different types depending on the specific circumstances. For example: 1. Standard Assignment Agreement: This is the most common type of agreement used when transferring the proprietary lease and membership rights of a cooperative apartment. 2. Partial Assignment Agreement: In some cases, an assignor may transfer only a portion of their rights to the assignee. This type of agreement specifies the specific rights being transferred while retaining other rights. 3. Temporary Assignment Agreement: This agreement allows for a temporary transfer of the lease and membership rights. It might be used, for instance, when the assignor needs to be absent for a certain period but intends to return to the cooperative apartment. 4. Successor Assignment Agreement: In the event of the assignor's death or incapacity, this agreement allows for the transfer of the proprietary lease and membership rights to a designated successor, as per the cooperative's bylaws. In summary, the Oregon Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a comprehensive legal document that regulates the transfer of rights and responsibilities between parties involved in a cooperative housing agreement. Covering various aspects such as assignment terms, financial obligations, and membership transfer, this agreement ensures a smooth and transparent process for all involved parties.
