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.
Pennsylvania Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that grants approval from a corporation to transfer the rights and responsibilities of a proprietary lease and membership to another individual or entity. This consent is typically required in situations where a shareholder or member of a corporation in Pennsylvania wishes to assign their lease and membership to a new party. The purpose of the Pennsylvania Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is to ensure that the corporation is aware of and approves the assignment, thus safeguarding the corporation's interests and maintaining control over the property. Keywords: Pennsylvania, consent of corporation, assignment, proprietary lease, membership, legal document, shareholder, entity, transfer of rights, responsibilities, approval, safeguarding interests, control, property. In addition to the general Pennsylvania Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership, there may be variations of this document based on specific circumstances. These could include: 1. Voluntary Assignment: This type of consent is used when a shareholder or member willingly chooses to assign their proprietary lease and membership to another party. This may occur due to personal reasons, financial considerations, or other factors deemed acceptable by the corporation. 2. Involuntary Assignment: In some cases, a proprietary lease and membership may be assigned without the consent of the shareholder or member. This can happen if the shareholder or member fails to fulfill certain obligations or breaches the terms of their lease agreement. In such instances, the corporation's consent is still required to validate the assignment. 3. Transfer within the Corporation: There may be situations where a shareholder or member wishes to transfer their proprietary lease and membership to another individual or entity within the same corporation. This type of consent confirms that the corporation acknowledges and approves such transfers, provided they meet the necessary criteria set forth in the bylaws or agreements. 4. Transfer to a Non-Member: Occasionally, a proprietary lease and membership may be assigned to an individual or entity that is not yet a member of the corporation. This kind of consent allows the corporation to review the potential new member's qualifications, commitments, and financial suitability before granting approval for the assignment. It is essential to consult with legal professionals or seek advice from an attorney experienced in Pennsylvania real estate and corporate law to ensure compliance with all legal requirements and the specific terms detailed in the Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership.
