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 Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that pertains to the transfer of ownership rights and membership in a corporation or cooperative housing association. This detailed description will provide a comprehensive overview of the purpose, process, and key considerations involved in the assignment of a proprietary lease and membership consent in Washington. In general, when a shareholder or member of a corporation wishes to transfer their ownership or membership rights in a cooperative housing association, they must obtain the consent of the corporation's board of directors or governing body. This consent is crucial to ensure that the transfer complies with the association's rules, regulations, and bylaws. The Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is the legal instrument utilized to obtain such consent in Washington. The document includes several important sections that address various aspects of the assignment and transfer process. Firstly, it outlines the parties involved by identifying the assigning party (the current shareholder or member) and the assignee (the individual or entity to whom the ownership or membership rights are being transferred). Detailed information about the assigning party, such as their name, contact information, and the specific housing unit or property being assigned, is typically included. Additionally, the Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership establishes the terms and conditions of the assignment. This may include details such as the effective date of the assignment, any limitations or restrictions on the transfer, and the responsibilities of the assignee in adhering to the cooperative housing association's rules, regulations, and financial obligations. Furthermore, the document underscores the corporation's consent to the assignment, thereby allowing the assignee to assume the rights and responsibilities associated with the proprietary lease and membership. This consent is critical as it ensures that the new shareholder or member is officially recognized by the corporation and entitled to enjoy the benefits and privileges of ownership or membership. It is important to note that there might be variations or specific types of Washington Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership documents depending on the housing association or corporation involved. These variations can arise from factors such as the type of property (residential, commercial, etc.) or specific provisions outlined in the corporation's governing documents. For instance, there could be separate consent forms for the assignment of proprietary leases and membership in different types of cooperative housing associations, such as those catering to senior citizens or low-income individuals. To ensure compliance with Washington state law and the specific requirements of the corporation or cooperative housing association, it is advisable to consult with an attorney experienced in real estate transactions or cooperative law. This legal professional can assist in drafting or reviewing the Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership, as well as guide the assigning party and assignee throughout the process. In conclusion, the Washington Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a crucial legal document that facilitates the transfer of ownership rights and membership in a cooperative housing association. By obtaining the corporation's consent, the assignee can assume the privileges and responsibilities associated with the proprietary lease and membership. Understanding the purpose, process, and varying types of this consent document is essential for all parties involved in the assignment of ownership or membership in Washington state.
