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: Virginia Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership: Detailed Overview Keywords: Virginia Cooperative Housing, Cooperative Apartment, Proprietary Lease, Membership Transfer, Assignment of Lease, Rights and Responsibilities, Virginia Cooperative Act Introduction: The Virginia Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legally binding document that facilitates the transfer of ownership and occupancy rights in a cooperative apartment. This agreement outlines the terms, conditions, and responsibilities associated with the transfer of a proprietary lease and membership within a cooperative housing community in Virginia. Types of Virginia Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership: 1. Standard Virginia Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership: This agreement is the fundamental document used to assign the proprietary lease and membership rights from the assignor (current owner) to the assignee (new owner). 2. Virginia Agreement to Assign Proprietary Lease and Membership with Share Transfer: In some cases, cooperative housing communities in Virginia may require the transfer of shares within the housing corporation alongside the proprietary lease and membership. This type of agreement includes provisions related to share transfer in addition to the lease and membership assignment. Content: 1. Parties Involved: The agreement begins by identifying the parties involved, including the assignor, assignee, and housing corporation. It also includes their legal names, addresses, and contact information. 2. Recitals: This section provides a brief background explaining the intent of the agreement, such as the assignor's desire to transfer ownership and the assignee's interest in acquiring the proprietary lease and membership. 3. Effective Date and Term: The effective date marks the official commencement of the agreement. The term specifies the duration of the lease and membership. It often aligns with the remaining term of the original lease. 4. Assignment of Proprietary Lease and Membership: This section details the transfer of the proprietary lease and membership rights from the assignor to the assignee. It includes specific clauses describing the obligations, restrictions, and responsibilities of the assignee as a member of the cooperative housing community. 5. Share Transfer (if applicable): If share transfer is involved, this section outlines the process, including requirements, fees, and any necessary approval from the housing corporation or board of directors. 6. Rights and Privileges: This section elucidates the rights and privileges granted to the assignee as a member of the cooperative housing community. It covers aspects such as voting rights, use of common facilities, and participation in community decision-making. 7. Responsibilities and Obligations: Here, the assignee's responsibilities as a member are stated, including timely payment of assessments, adherence to bylaws and rules, and participation in the cooperative community's maintenance and management activities. 8. Indemnification and Liability: To protect both parties, this section addresses liability issues, outlining the responsibilities of each party in case of damages or violations. 9. Governing Law: The agreement incorporates the relevant provisions of the Virginia Cooperative Act and clarifies that any disputes will be resolved according to the laws of Virginia. 10. Signatures: The agreement concludes with signatures from all parties involved, ensuring their acceptance and commitment to the terms laid out in the document. Final Thoughts: The Virginia Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership serves as a crucial legal framework for transferring ownership and occupancy rights within cooperative housing communities. By laying out rights, responsibilities, and expectations, this agreement protects both the assignor and assignee, ensuring a smooth and transparent transfer process.
