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 Washington Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legally binding document that outlines the transfer of the proprietary lease and membership rights of a cooperative apartment in the state of Washington. This agreement is crucial when a current cooperative apartment owner wishes to assign or transfer their ownership rights to another party. The primary purpose of this contract is to define the terms and conditions of the transfer, ensuring that both the assignor (current owner) and the assignee (new owner) are aware of their rights, obligations, and responsibilities. It is essential for the parties involved to understand the implications and legalities of this agreement. The Washington Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership generally includes the following key provisions: 1. Identification of Parties: This section enlists the names, addresses, and contact information of both the assignor and the assignee, ensuring clarity and accurate identification of the parties involved. 2. Property Information: This section describes the cooperative apartment in detail, including its address, unit number, and any other relevant information necessary for identification purposes. 3. Assignment of Proprietary Lease and Membership Rights: The heart of the agreement, this part officially assigns the proprietary lease and membership rights from the assignor to the assignee. It specifies the effective date of the assignment and any specific conditions attached to it. 4. Assurances and Disclosures: Here, the assignor assures that they have the legal right to transfer the proprietary lease and membership. It also requires the assignor to disclose any outstanding debts, liens, or legal issues associated with the apartment. 5. Rights and Obligations: This section outlines the rights and obligations of the assignee as the new owner of the cooperative apartment. It may include rules regarding occupancy, maintenance responsibilities, payment of fees, and adherence to bylaws. 6. Approval Process: If required by the cooperative association, this part details the procedure for obtaining the association's approval of the assignment. It may necessitate the assignee to undergo a screening process or meet certain eligibility criteria. Different variations or types of Washington Agreements to Assign Proprietary Lease of Cooperative Apartment and Membership may exist, depending on the specific requirements of various cooperative associations. Some agreements might include additional clauses or provisions addressing unique situations or concerns regarding the transfer of ownership. In summary, the Washington Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a critical document that facilitates the smooth and lawful transfer of cooperative apartment ownership in Washington. It ensures that both parties involved in the assignment fully understand their rights, obligations, and the conditions attached to the transfer, thus protecting their legal interests.
