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: Tennessee Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership: Explained in Detail Keywords: Tennessee Agreement, Assign Proprietary Lease, Cooperative Apartment, Membership, Types Introduction: The Tennessee Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document that outlines the terms and conditions for transferring rights and responsibilities associated with a cooperative apartment. This agreement allows individuals to assign their proprietary lease and membership rights to another party. Details of the Agreement: 1. Assignment of Proprietary Lease: The agreement specifies the details of the current proprietary lease and its assignment to the assignee. It covers the obligations and privileges associated with the lease, including the term, rental payments, maintenance responsibilities, and any restrictions or limitations. 2. Transfer of Membership Rights: The agreement includes provisions concerning the transfer of membership rights in the cooperative housing corporation. It identifies the existing member, the assignee, and outlines the process for membership transfer. 3. Governing Laws and Regulations: The document ensures compliance with Tennessee state laws and regulations pertaining to cooperative apartment assignments. It includes references to applicable statutes, acts, or governing bodies to ensure adherence to legal requirements. 4. Rights and Responsibilities of Assignor and Assignee: The agreement clearly defines the rights and responsibilities of both the assignor (current leaseholder) and the assignee (prospective leaseholder). It outlines each party's rights to occupancy, use of common areas, and maintenance obligations. 5. Financial Considerations: The agreement specifies any financial transactions associated with the assignment, such as the assignee assuming existing financial obligations, security deposits, or fees payable to the cooperative housing corporation. 6. Approval Process: If there are specific requirements or procedures for the approval of the assignment by the cooperative housing corporation, the agreement outlines the necessary steps, including obtaining board or shareholder approval. Types of Tennessee Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership: While there may not be specific subtypes of Tennessee Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership, variations can occur depending on individual circumstances, such as different cooperative housing corporations or unique terms in proprietary leases. These agreements can also differ based on the applicable laws, rules, and regulations of the Cooperative Corporation. Conclusion: The Tennessee Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legally binding document that facilitates the transfer of rights and responsibilities associated with cooperative apartments. It clarifies the terms of lease assignment and membership transfer to protect the interests of both the assignor and assignee.
