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.
Rhode Island Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership refers to a legal document that outlines the transfer of rights and responsibilities associated with a cooperative apartment and membership in a cooperative housing corporation in the state of Rhode Island. This agreement is crucial for ensuring a smooth and seamless transition of ownership and occupancy within a cooperative housing community. In Rhode Island, there may be different types of Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership, including: 1. Standard Assignment Agreement: This type of agreement is used when a current shareholder/member of a cooperative housing corporation wishes to transfer their proprietary lease and membership rights to another individual or entity. It lays out the terms and conditions of the transfer, including any restrictions or requirements imposed by the cooperative corporation. 2. Assignment with Approval Agreement: This type of agreement is similar to the standard assignment agreement, but it involves obtaining the approval of the cooperative housing corporation's board of directors or designated committee before the transfer can take place. The board or committee typically evaluates the proposed assignee's financial stability, background check, and other relevant criteria to ensure that they meet the cooperative community's standards. 3. Assignment with Consent Agreement: In certain cases, the proprietary lease or cooperative corporation's bylaws may require obtaining the consent of existing shareholders/members in addition to the board's approval for an assignment. This agreement outlines the process of obtaining such consent and includes provisions regarding required voting thresholds or other mechanisms required for consent. Regardless of the specific type, a Rhode Island Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership typically includes the following essential elements: 1. Parties: The agreement identifies the assignor (current shareholder/member), the assignee (prospective shareholder/member), and the cooperative housing corporation. 2. Transfer Terms: It outlines the terms and conditions of the transfer, such as the assignment price, any associated fees, and timelines for completing the transaction. 3. Membership Rights: This section defines the assignee's rights and responsibilities as a new shareholder/member, including their obligations towards maintaining the cooperative apartment, payment of assessments, and adherence to the cooperative corporation's bylaws and rules. 4. Approval/Consent Process: Depending on the type of agreement, it explains the requirements for obtaining board approval and/or shareholder/member consent, as well as any additional documentation or information that may be necessary. 5. Indemnification: The agreement may contain indemnification clauses to protect the cooperative housing corporation and its existing shareholders/members from any losses, damages, or liabilities resulting from the assignment. 6. Governing Law: It stipulates that the agreement is governed by Rhode Island state laws and describes the jurisdiction for any potential legal disputes. In conclusion, a Rhode Island Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a comprehensive legal document that facilitates the transfer of ownership and occupancy rights within a cooperative housing corporation. It ensures compliance with applicable laws and cooperative corporation's regulations while safeguarding the interests of all parties involved.
