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 Pennsylvania Agreement for Purchase and Sale of Rights to Cooperative Apartment is a legal document that outlines the terms and conditions of buying and selling the rights to a cooperative apartment in the state of Pennsylvania. This agreement serves as a binding contract between the buyer and seller, ensuring that both parties are protected and their rights are upheld throughout the transaction process. Key terms and clauses typically included in the Pennsylvania Agreement for Purchase and Sale of Rights to Cooperative Apartment are: 1. Parties: This section identifies the buyer and seller involved in the transaction along with their legal names and addresses. Additionally, it may include details about any agents or attorneys representing either party. 2. Property Description: This part provides a detailed description of the cooperative apartment being sold, including the address, unit number, and any other relevant identifiers. It may also mention the cooperative building or association to which the apartment belongs. 3. Purchase Price and Payment Terms: Here, the agreed-upon purchase price for the cooperative apartment is stated, along with the method and schedule of payment. This section may also outline any earnest money deposits, down payments, or financing arrangements involved. 4. Closing Requirements: This clause specifies the date and location of the closing, where the actual sale and transfer of rights will take place. It may also cover the allocation of closing costs, including expenses such as title searches, recording fees, transfer taxes, and attorney fees. 5. Representations and Warranties: This section ensures that both the buyer and seller make certain promises and statements about the property's condition, ownership, and title. It addresses issues such as liens, encumbrances, and any pending legal matters. 6. Contingencies: Certain contingencies may be included in the agreement, allowing the buyer to perform inspections, obtain financing, or review the cooperative association's documents before finalizing the purchase. These contingencies provide protection and an opportunity for the buyer to withdraw from the agreement if unsatisfied with the findings. 7. Default and Remedies: In case either party fails to fulfill their obligations under the agreement, this clause specifies the remedies available to the innocent party, such as terminating the agreement or seeking legal action. It is important to note that variations or additional provisions may exist for different types of cooperative apartments in Pennsylvania. For example, there could be separate agreements specific to senior cooperative housing, affordable housing cooperatives, or mixed-use cooperative buildings. These variations may address unique considerations, regulations, or financing options associated with each type. Overall, the Pennsylvania Agreement for Purchase and Sale of Rights to Cooperative Apartment serves as a comprehensive document ensuring a smooth and legally binding transfer of rights between the buyer and seller of a cooperative apartment in Pennsylvania.
