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 North Dakota Agreement for Purchase and Sale of Rights to Cooperative Apartment is a legally binding document that outlines the terms and conditions for the transfer of ownership rights to a cooperative apartment. This agreement serves as a crucial tool in protecting the interests of both the seller and the buyer during the buying and selling process. In this agreement, the parties involved, including the seller (cooperative apartment shareholder) and the buyer, agree to the terms and conditions of the sale. These terms typically include the purchase price, any financing arrangements, and contingencies that may be necessary for the transaction. The agreement also includes a description of the cooperative apartment being sold, including its location, dimensions, and any relevant features. One important aspect of the North Dakota Agreement for Purchase and Sale of Rights to Cooperative Apartment is the provision for due diligence. This clause allows the buyer to thoroughly inspect the cooperative apartment and its records to ensure that there are no hidden issues, such as outstanding loans, violations, or pending litigation. It also requires the seller to provide all necessary documents related to the cooperative apartment, such as the articles of incorporation, bylaws, financial statements, and minutes of shareholder meetings. There are various types of North Dakota Agreements for Purchase and Sale of Rights to Cooperative Apartment that may exist, each tailored to different situations or contingencies that may arise. Some common variations include: 1. Standard North Dakota Agreement for Purchase and Sale of Rights to Cooperative Apartment: This is the basic agreement used for most cooperative apartment transactions, detailing the essential terms and conditions of the sale. 2. Contingency North Dakota Agreement for Purchase and Sale of Rights to Cooperative Apartment: This agreement includes additional clauses and provisions that are contingent upon certain events or conditions, such as the buyer securing financing or obtaining board approval from the cooperative housing association. 3. Cash North Dakota Agreement for Purchase and Sale of Rights to Cooperative Apartment: This type of agreement stipulates that the buyer will pay the full purchase price in cash, without the need for any mortgage financing. 4. As-Is North Dakota Agreement for Purchase and Sale of Rights to Cooperative Apartment: In this agreement, the seller sells the cooperative apartment in its current condition, without any warranties or guarantees regarding its condition or functionality. It is important for both buyers and sellers to understand the specific terms and conditions outlined in the North Dakota Agreement for Purchase and Sale of Rights to Cooperative Apartment and seek legal advice if necessary. This ensures a smooth and fair transaction for all parties involved.
