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.
A Cooperative Apartment, also known as a co-op, is a unique form of homeownership where residents collectively own shares in a corporation that owns the building. In South Dakota, the Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document used when a person wants to transfer their ownership rights and leasehold interest in a cooperative apartment to another individual or entity. This agreement is crucial as it ensures a smooth and legal transfer of ownership. The South Dakota Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership typically includes essential details such as the names and addresses of the assignor (current owner) and assignee (incoming owner), the specific apartment unit being assigned, and the effective date of the assignment. It may also outline any conditions or restrictions for the assignment, such as obtaining board approval or adhering to certain rules and regulations. Key terms that might be mentioned in this agreement could include "cooperative apartment," "proprietary lease," "assignor," "assignee," "membership," "board approval," "leasehold interest," "transfer of ownership," and "rules and regulations." It's important to note that there may be variations or additional types of South Dakota Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership based on different co-op buildings or associations. For instance, the agreement could differ if it is for a residential co-op versus a commercial co-op. Additionally, specific co-op developments or associations may have their own customized agreements or clauses that need to be included in the document. To ensure the accuracy and suitability of the agreement, it is advisable to consult with legal professionals specializing in real estate law or cooperative housing in South Dakota. They can provide the necessary guidance and ensure that all relevant legal requirements and provisions are properly addressed in the Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership, facilitating a seamless transfer of ownership in the co-op.
