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. Also, it is common to have an assumption by the Assignee of the liabilities under the Lease.
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.
Washington Assumption of Proprietary Lease is a legal process that occurs when a tenant takes over the rights and responsibilities of an existing lease agreement in a condominium or cooperative housing unit in the state of Washington. This transfer of lease often happens when the original tenant wishes to vacate the property before the lease term expires. The assumption of a proprietary lease in Washington involves a thorough review and approval process by the landlord or the housing cooperative board. The key aspects and requirements of this process include: 1. Documentation: The original tenant, known as the "assignor," must provide a written request to the landlord or board, outlining their intention to transfer the lease to a new tenant, referred to as the "assignee." The request should include details about the proposed assignee, such as their background, employment status, and other relevant information. 2. Meeting the Eligibility Criteria: The assignee must meet the eligibility criteria set by the landlord or board. This may include factors such as income requirements, credit history, references, and any other conditions specified in the proprietary lease or bylaws of the housing cooperative. 3. Approval Process: The landlord or board will carefully review the application and conduct a background check on the proposed assignee. They may also interview the assignee and request additional documentation or references to assess their suitability as a tenant. Once the review process is complete and the assignee is deemed eligible, the assumption of the proprietary lease can proceed. 4. Assumption Agreement: After approval, both the assignor and assignee are required to sign an assumption agreement, which outlines the terms and conditions of the lease assumption. This agreement transfers the rights, obligations, and liabilities of the original tenant to the assignee, in accordance with the proprietary lease terms. It is essential to note that different types or variations of Washington Assumption of Proprietary Lease might exist, depending on the specific provisions outlined in the original lease agreement, as well as any additional requirements enforced by the landlord or cooperative board. These variations can include different eligibility criteria, application processes, and documentation requirements. In summary, Washington Assumption of Proprietary Lease is a legal procedure that allows for the transfer of lease rights and responsibilities from one tenant to another in a condominium or cooperative housing unit. It involves a comprehensive application and approval process by the landlord or board, culminating in an assumption agreement. Proper adherence to the specific requirements is crucial for a successful lease transfer.
