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 Tennessee Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document used in the state of Tennessee that grants consent to the assignment of a proprietary lease and membership in a corporation. This document is typically required when a shareholder or tenant of a corporation wishes to transfer their leasehold interest and membership rights to another party. The Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is an essential part of the process of transferring ownership or membership rights. It ensures that all necessary approvals from the corporation are obtained before the assignment can be finalized. This document serves as proof that the corporation has given its consent to the transfer and acknowledges the new leaseholder or member as a legal participant in the corporation. Key elements included in the Tennessee Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership may vary depending on the specific circumstances and the requirements of the corporation. However, the general contents of the document often include: 1. Identification of the corporation: The legal name and address of the corporation are stated at the beginning of the document. 2. Parties involved: The current tenant or shareholder, the proposed assignee, and the corporation's board of directors or authorized representative are identified, along with their contact information. 3. Description of the lease: The document describes the terms and conditions of the proprietary lease, including its duration, the property address, and any restrictions or provisions specific to the leasehold interest being assigned. 4. Assignment details: The proposed assignment is outlined, including the effective date, the assignee's name, address, and contact information, and any accompanying transfer of membership rights. 5. Consent and approval: The corporation's consent to the assignment and membership transfer is expressly given, acknowledging the assignee as the new leaseholder and member. 6. Representations and warranties: Both parties may provide representations and warranties, ensuring that they have the legal capacity to enter into the transaction and that all information provided is accurate. 7. Governing law: The document specifies that Tennessee law governs the interpretation and enforcement of the Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership. 8. Execution and signatures: The document is typically signed by the current tenant or shareholder, the proposed assignee, and an authorized representative of the corporation. These signatures signify their agreement and acceptance of the terms stated therein. As for different types of the Tennessee Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership, they may include variations based on the specific corporation, lease terms, or unique requirements stated by the corporation's bylaws or regulations. However, these variations are generally minor and do not alter the basic premise and purpose of the document.
