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 Kentucky Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document that outlines the terms and conditions under which the proprietary lease of a cooperative apartment can be assigned to another party in the state of Kentucky. This agreement is crucial for both the assignor (original leaseholder) and the assignee (new leaseholder), as it establishes their rights, responsibilities, and obligations within the cooperative housing community. Key terms and clauses commonly found in a Kentucky Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership include: 1. Assignment of Lease: This section explicitly states that the assignor is transferring their proprietary lease rights and membership in the cooperative housing association to the assignee. It outlines the terms under which this can occur, including consent from the cooperative board or association. 2. Allocations and Payments: This portion details how the financial responsibilities and allocations will be handled between the assignor and the assignee. It may discuss matters such as maintenance fees, common charges, taxes, utilities, and assessments, specifying who is accountable for these payments. 3. Rights and Obligations: This segment outlines the rights and obligations of both the assignor and the assignee. It covers issues like access to common areas, compliance with association bylaws, adherence to rules and regulations, and participation in decision-making processes within the cooperative. 4. Approval Process: Here, the agreement lays out the procedure that the assignee must follow to gain approval from the cooperative board or association. This process may involve submitting a detailed application, undergoing a background check, and attending an interview to ensure suitability and compatibility with cooperative living. 5. Indemnification and Liabilities: This section discusses the respective liabilities of the assignor and assignee, indemnifying each party against any potential legal claims, damages, or disputes that may arise during the assignment process. Different types of Kentucky Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership can vary based on factors such as the specific cooperative housing association involved, the size of the cooperative apartment, and the unique terms negotiated between the parties. These agreements may also differ depending on whether the cooperative is a market-rate or limited-equity housing association, which may affect the assignment process and eligibility requirements. Overall, the Kentucky Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is crucial in facilitating the smooth transfer of proprietary lease rights within a cooperative housing community, providing clarity, protection, and guidelines for both the assignor and assignee.
