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.
The Hawaii Assumption of Proprietary Lease is a legal agreement that enables an individual or a business entity to acquire or take over a leasehold interest in a property governed by a condominium or cooperative association. This agreement grants the assumption of the existing proprietary lease rights and obligations from the original lessee to the new party. A proprietary lease is typically associated with cooperative housing units where residents own shares of stock in a cooperative corporation, granting them the right to occupy a specific unit within the building. In Hawaii, this type of lease is commonly referred to as a "Hawaii Cooperative Housing Corporation Lease." The Hawaii Assumption of Proprietary Lease outlines the terms and conditions under which the rights and responsibilities of the original lessee are transferred to the new party. It typically covers essential aspects such as: 1. Transfer Process: The agreement outlines the steps and requirements for the assumption of the proprietary lease. This includes obtaining the consent of the cooperative association or board, submitting necessary documentation, and adhering to any applicable approval procedures. 2. Legally Binding Obligations: The new lessee assumes the previous lessee's obligations, including paying monthly maintenance fees, adhering to association rules and regulations, and fulfilling any other financial responsibilities outlined in the original lease agreement. 3. Occupancy Rights: The assumption of proprietary lease guarantees the new lessee the right to occupy and use the cooperative unit, subject to the conditions specified in the original lease agreement and the cooperative association's bylaws. 4. Termination and Default: The agreement may also explain provisions related to termination, default, and any associated consequences. It outlines the circumstances under which the lease may be terminated and the potential penalties or legal actions that may be taken in case of a default. It is important to consult with a legal professional in Hawaii to understand the specific requirements and nuances of the assumption of proprietary lease agreements in the state. Proper due diligence and obtaining necessary consents are crucial to ensure a smooth and legally compliant transfer of leasehold interests.The Hawaii Assumption of Proprietary Lease is a legal agreement that enables an individual or a business entity to acquire or take over a leasehold interest in a property governed by a condominium or cooperative association. This agreement grants the assumption of the existing proprietary lease rights and obligations from the original lessee to the new party. A proprietary lease is typically associated with cooperative housing units where residents own shares of stock in a cooperative corporation, granting them the right to occupy a specific unit within the building. In Hawaii, this type of lease is commonly referred to as a "Hawaii Cooperative Housing Corporation Lease." The Hawaii Assumption of Proprietary Lease outlines the terms and conditions under which the rights and responsibilities of the original lessee are transferred to the new party. It typically covers essential aspects such as: 1. Transfer Process: The agreement outlines the steps and requirements for the assumption of the proprietary lease. This includes obtaining the consent of the cooperative association or board, submitting necessary documentation, and adhering to any applicable approval procedures. 2. Legally Binding Obligations: The new lessee assumes the previous lessee's obligations, including paying monthly maintenance fees, adhering to association rules and regulations, and fulfilling any other financial responsibilities outlined in the original lease agreement. 3. Occupancy Rights: The assumption of proprietary lease guarantees the new lessee the right to occupy and use the cooperative unit, subject to the conditions specified in the original lease agreement and the cooperative association's bylaws. 4. Termination and Default: The agreement may also explain provisions related to termination, default, and any associated consequences. It outlines the circumstances under which the lease may be terminated and the potential penalties or legal actions that may be taken in case of a default. It is important to consult with a legal professional in Hawaii to understand the specific requirements and nuances of the assumption of proprietary lease agreements in the state. Proper due diligence and obtaining necessary consents are crucial to ensure a smooth and legally compliant transfer of leasehold interests.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
