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 Arizona Agreement for Purchase and Sale of Rights to Cooperative Apartment is a legally binding contract that outlines the terms and conditions of a transaction involving the purchase and sale of rights to a cooperative apartment in the state of Arizona. This agreement provides a comprehensive framework for both the buyer and seller to follow throughout the purchasing process. Key terms and conditions covered in the Arizona Agreement for Purchase and Sale of Rights to Cooperative Apartment include the identification of the cooperative apartment, purchase price, earnest money deposit, financing arrangements, closing date, and contingencies. The agreement will also cover the responsibilities of both parties, including disclosures, inspections, and potential remedies in case of breaches. Under Arizona law, there are different types of cooperative apartment agreements for purchase and sale, each catering to specific scenarios and circumstances. The most common types include: 1. Standard Arizona Agreement for Purchase and Sale of Rights to Cooperative Apartment: This agreement serves as a standard template for cooperative apartment transactions in Arizona. It covers all necessary aspects and can be customized to suit the specific needs of the parties involved. 2. Arizona Agreement for Purchase and Sale of Rights to Cooperative Apartment with Financing Contingency: This variation of the agreement includes provisions related to obtaining financing for the purchase. It allows the buyer to make the contract contingent upon securing a loan, outlining the terms and conditions for financing approval. 3. Arizona Agreement for Purchase and Sale of Rights to Cooperative Apartment with Inspection Contingency: This type of agreement includes provisions for property inspections, allowing the buyer to engage professionals to assess the condition of the cooperative apartment. It provides an opportunity for the buyer to negotiate repairs or request a reduction in the purchase price based on the inspection findings. 4. Arizona Agreement for Purchase and Sale of Rights to Cooperative Apartment with Seller Financing: In situations where the seller acts as the financier, this agreement outlines the terms of the seller's financing, including interest rates, repayment terms, and potential penalties. These various types of Arizona Agreement for Purchase and Sale of Rights to Cooperative Apartment provide flexibility and protection for both buyers and sellers in different real estate scenarios. It is crucial for all parties involved to carefully review and understand the agreement's terms and seek legal advice if necessary, ensuring a smooth and legally compliant transaction.
