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.
Keywords: Rhode Island, Consent of Corporation, Assignment of Proprietary Lease, Consent to Membership Detailed Description: The Rhode Island Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that is essential for corporations located in Rhode Island. This document holds significant importance when a corporation decides to assign its proprietary lease and grant membership to an individual or another corporation. It ensures that all parties involved comply with the necessary regulations and requirements. The Consent of Corporation to Assignment of Proprietary Lease authorizes the transfer of a proprietary lease from one party to another. A proprietary lease is a legal agreement that grants the right to possess and occupy a specific property in a shared ownership building or community. Additionally, the Consent of Corporation to Membership allows a corporation to authorize an individual or another corporation to become a member. Membership in a corporation generally signifies a stake in its ownership, decision-making processes, and financial interests. It is important to note that there may be different types of Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership, depending on the specific circumstances and requirements of the corporation. These variations could include: 1. Assignment of Proprietary Lease with Consent to Individual Membership: This type of consent is used when an individual is assigned the proprietary lease and granted membership in the corporation. 2. Assignment of Proprietary Lease with Consent to Corporate Membership: This type of consent is employed when a corporation is assigned the proprietary lease and granted membership in the corporation. 3. Partial Assignment of Proprietary Lease with Consent to Membership: This type of consent is utilized when only a portion of the proprietary lease is assigned and membership is granted accordingly. 4. Full Assignment of Proprietary Lease with Consent to Multiple Memberships: This type of consent is applicable when the entire proprietary lease is assigned, and membership is granted to multiple individuals or corporations. To ensure the validity and legal compliance of these consents, it is crucial to consult with legal professionals who specialize in Rhode Island corporate law. Seeking legal advice will help corporations execute these documents accurately and in adherence to the state's regulations.
