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 Illinois Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legally binding document that outlines the terms and conditions under which a corporation gives its consent to the assignment of a proprietary lease and membership in an Illinois corporation. This document is crucial in the transfer of ownership within a corporation, ensuring that all parties involved comply with state laws and regulations. The Consent of Corporation to Assignment of Proprietary Lease ensures that the corporation, as the landlord, agrees to the transfer of a leasehold interest to a new tenant. This document is essential in maintaining the corporation's rights, responsibilities, and obligations towards the property in question. It typically contains information about the parties involved, the assignment details, and any prerequisites or conditions that need to be met before approval. Moreover, the Consent of Corporation to Membership grants permission for an individual or entity to become a member of the corporation. This membership often encompasses certain rights, privileges, and obligations, which need to be clearly defined and agreed upon. The document may include information such as the name of the corporation, the new member's details, and the terms and conditions of membership. It is important to note that while the general purpose of the Illinois Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership remains the same, there may be different variations of this document, tailored to specific circumstances. For instance, one type of consent may be required when a lease is assigned within the same corporation, while another type could apply when the lease is assigned to an external party or entity. In summary, the Illinois Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a vital legal document used in transferring leasehold interests and granting membership within an Illinois corporation. It ensures that all parties involved are aware of their rights, obligations, and responsibilities, while adhering to state laws and regulations.
