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.
Title: Understanding the Pennsylvania Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership Keywords: Pennsylvania, agreement, assign, proprietary lease, cooperative apartment, membership Introduction: The Pennsylvania Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document that outlines the terms and conditions related to the transfer of a proprietary lease and membership in a cooperative apartment building. This agreement is crucial in facilitating the smooth transfer of ownership rights between the existing and new members. Types of Pennsylvania Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership: 1. Standard Agreement to Assign Proprietary Lease and Membership: This type of agreement is the most common and covers the typical terms and conditions associated with the transfer of a proprietary lease and membership in a cooperative apartment. It outlines the responsibilities of both the assignor (current member) and the assignee (prospective member) to ensure a seamless transition. 2. Agreement to Assign Proprietary Lease and Membership with Limited Restrictions: In some cases, cooperative associations may have specific restrictions or guidelines regarding the assignability of proprietary leases and memberships. This type of agreement addresses those limitations and establishes the rights and obligations of both parties while adhering to the association's restrictions. 3. Agreement to Assign Proprietary Lease and Membership with Time-Specific Terms: Certain cooperative associations may require the assignee to occupy the cooperative apartment for a specific period after the assignment. This type of agreement sets forth the duration and conditions under which the new member must reside in the cooperative apartment, ensuring compliance with the association's occupancy requirements. Key Elements of a Pennsylvania Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership: 1. Parties involved: The agreement identifies the assignor (current member) and the assignee (prospective member) along with their respective contact information. 2. Description of the cooperative apartment: This section provides a detailed description of the cooperative apartment being assigned, including its location, unit number, square footage, and any unique features. 3. Transfer of proprietary lease and membership: The agreement outlines the terms and conditions for the transfer of the proprietary lease and membership from the assignor to the assignee, including any associated fees, dues, or assessments. 4. Governing regulations: It is crucial to reference the cooperative association's bylaws, rules, and regulations that govern membership and residency within the cooperative apartment building. 5. Representations and warranties: Both the assignor and the assignee may make certain representations and warranties regarding their ability to enter into the agreement and comply with its terms. 6. Indemnification and liability: This section specifies the responsibilities of each party in terms of indemnifying and holding harmless the other party against any claims, damages, or liabilities arising from the assignment of the proprietary lease and membership. Conclusion: The Pennsylvania Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership plays a vital role in facilitating the transfer of ownership rights in a cooperative apartment. Whether it is a standard agreement or one with unique provisions, this legal document is essential to protect the rights and interests of both the assignor and the assignee.
