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: A Comprehensive Overview of the Wisconsin Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership Introduction: In the state of Wisconsin, the Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership holds significant importance when transferring the rights and obligations associated with cooperative apartment ownership. This legal document facilitates the transfer of ownership from the assignor to the assignee while ensuring a smooth transition of rights and responsibilities within a cooperative housing arrangement. This article aims to provide a detailed description of the document, highlighting its purpose, key provisions, and various types available, if applicable. Key Terms and Definitions: 1. Wisconsin Cooperative Apartment: A housing unit within a cooperative development, where residents own shares in a cooperative corporation that entitles them to proprietary leases for their individual units. Purpose of the Wisconsin Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership: The Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership serves as a contractual safeguard when a current shareholder (assignor) wishes to transfer their rights and obligations to a new party (assignee). It is vital for maintaining the cooperative's integrity by ensuring that the incoming member adheres to the cooperative's rules, regulations, and financial obligations. Key Provisions: The Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership typically includes the following provisions: 1. Assignor and Assignee Information: Identification details of both parties involved in the assignment, including legal names, addresses, and contact information. 2. Cooperative Corporation Details: Providing the name and relevant information about the cooperative corporation. 3. Terms and Conditions: Outlining the specific terms and conditions for assigning the proprietary lease and membership rights, such as lease duration, renewal options, and maintenance obligations. 4. Financial Provisions: Determining the financial aspects of the assignment, including the assignee's responsibility for payment of assessments, co-op fees, utilities, and any outstanding dues. 5. Approval Process: Describing the process by which the cooperative corporation evaluates and approves the assignment, ensuring compliance with its bylaws and regulations. 6. Governing Law: Stipulating the governing jurisdiction under which the agreement operates, commonly the laws of the State of Wisconsin. Types of Wisconsin Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership: While the basic provisions and format of the Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership remain consistent, variations can exist based on: 1. Cooperative Corporation-Specific Agreements: Different cooperative corporations may have additional clauses or conditions specific to their governing documents or policies. 2. Assignment Within the Same Cooperative: When the assignor and assignee are transferring ownership within the same cooperative corporation, specific provisions may apply to streamline the internal transfer process. Conclusion: The Wisconsin Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a critical legal document when it comes to transferring ownership and property rights within a cooperative housing arrangement. By ensuring a transparent and comprehensive assignment process, this agreement safeguards the interests of both the assignor and assignee, maintaining the cooperative's stability. It is important for both parties to fully understand the terms and provisions within the agreement, seeking legal counsel if necessary, to facilitate a successful transfer of ownership within the cooperative community.
