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 South Dakota Agreement for Purchase and Sale of Rights to Cooperative Apartment is a legal document that outlines the terms and conditions involved in the transfer of ownership rights of a cooperative apartment in South Dakota. This agreement serves as a binding contract between the buyer and seller, ensuring protection and clear understanding of the transaction. The content of the South Dakota Agreement for Purchase and Sale of Rights to Cooperative Apartment generally includes: 1. Parties Involved: The agreement identifies the buyer and seller by their legal names and addresses. It is crucial to provide accurate information to avoid any legal complications. 2. Property Details: This section describes the cooperative apartment being sold, including the address, unit number, and any unique identifiers. Additionally, it may specify any additional features or amenities associated with the apartment. 3. Purchase Price and Deposit: The agreement outlines the agreed-upon purchase price for the cooperative apartment and any terms related to deposit payments. It may also mention whether the deposit is refundable or non-refundable under certain circumstances. 4. Closing and Possession: This section elaborates on the closing date, where the legal transfer of ownership occurs. It may also detail how the possession of the cooperative apartment will be handed over to the buyer, including any applicable move-in or move-out dates. 5. Due Diligence and Disclosures: The agreement may require the seller to provide certain disclosures and documents relating to the cooperative apartment, such as financial statements or governing documents of the cooperative association. Buyers are typically granted a specified period to conduct inspections and due diligence on the property. 6. Financing and Contingencies: If the buyer plans to obtain financing for the purchase, this section will outline the terms and conditions related to the mortgage. It may also include details about any contingencies that need to be met before the sale can be finalized, such as the successful approval of a mortgage or the completion of required repairs. 7. Representations and Warranties: Both parties will make various representations and warranties, affirming the accuracy of their statements and disclosures. This section aims to protect the buyer from any misrepresentations made by the seller. 8. Default and Remedies: In case of default by either party, this section outlines the rights and remedies available to the non-defaulting party. It may include provisions for earnest money forfeiture, mediation or arbitration procedures, or the right to seek legal action. Different types of South Dakota Agreement for Purchase and Sale of Rights to Cooperative Apartments may exist based on specific circumstances or additional clauses incorporated into the agreement. For instance, there might be variations designed for commercial cooperative apartments, where the intent is different from residential transactions. It is essential to consult with legal professionals to ensure the agreement fits the specific needs and requirements of the transaction.
