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. Also, it is common to have an assumption by the Assignee of the liabilities under the Lease.
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.
Illinois Assumption of Proprietary Lease is a legal term referring to the process by which a tenant assumes the rights and obligations of a proprietary lease in a cooperative housing corporation or a co-op. Co-ops differ from traditional condominiums in that they are owned and operated by a corporation, with each resident holding shares in the corporation, rather than owning their individual units. When a tenant wishes to assume a proprietary lease in Illinois, they must typically go through a formal approval process by the board of the cooperative. This process ensures that the incoming tenant meets the eligibility requirements of the cooperative, such as creditworthiness and background checks. Once approved, the tenant assumes the rights and responsibilities outlined in the proprietary lease, becoming a shareholder in the cooperative and gaining the right to occupy a specific unit. There are different types of Illinois Assumption of Proprietary Lease, which may include: 1. Individual Assumption of Proprietary Lease: This type of assumption occurs when an individual tenant takes over the rights and obligations of a proprietary lease from another individual tenant or the cooperative itself. It usually involves reviewing and signing a formal assignment or assumption agreement with the cooperative's board. 2. Corporate Assumption of Proprietary Lease: In some cases, a corporation may assume a proprietary lease in Illinois. This can happen when a cooperative unit is purchased by a corporation for purposes such as providing housing for its employees or investment purposes. The corporation assumes the lease and designates individuals (employees or officers) to occupy and manage the unit, subject to the rules and regulations of the cooperative. 3. Family Transfers: Illinois allows for the transfer of proprietary leases among family members in cooperative housing. This type of assumption typically occurs when a unit owner wishes to transfer ownership to a family member or heir, who becomes the new tenant and assumes the rights and responsibilities of the proprietary lease. 4. Subleasing: While not technically an assumption, subleasing is another common practice in cooperative housing in Illinois. It occurs when a tenant leases their unit to another individual, known as the subtenant, for a specific period of time. The original tenant remains responsible for the obligations under the proprietary lease but retains the right to resume occupancy at the end of the sublease term. 5. Termination and Assumption: This type of assumption happens when a cooperative unit owner wishes to terminate their proprietary lease and transfer it to another party. The terminating owner typically assigns their rights and obligations to a new tenant who assumes the proprietary lease upon approval from the cooperative's board. In summary, an Illinois Assumption of Proprietary Lease involves the process of an individual or entity taking over the rights and obligations outlined in a proprietary lease for a cooperative housing unit. The specific processes and types of assumptions may vary based on the co-op's regulations and the circumstances of the lease transfer.Illinois Assumption of Proprietary Lease is a legal term referring to the process by which a tenant assumes the rights and obligations of a proprietary lease in a cooperative housing corporation or a co-op. Co-ops differ from traditional condominiums in that they are owned and operated by a corporation, with each resident holding shares in the corporation, rather than owning their individual units. When a tenant wishes to assume a proprietary lease in Illinois, they must typically go through a formal approval process by the board of the cooperative. This process ensures that the incoming tenant meets the eligibility requirements of the cooperative, such as creditworthiness and background checks. Once approved, the tenant assumes the rights and responsibilities outlined in the proprietary lease, becoming a shareholder in the cooperative and gaining the right to occupy a specific unit. There are different types of Illinois Assumption of Proprietary Lease, which may include: 1. Individual Assumption of Proprietary Lease: This type of assumption occurs when an individual tenant takes over the rights and obligations of a proprietary lease from another individual tenant or the cooperative itself. It usually involves reviewing and signing a formal assignment or assumption agreement with the cooperative's board. 2. Corporate Assumption of Proprietary Lease: In some cases, a corporation may assume a proprietary lease in Illinois. This can happen when a cooperative unit is purchased by a corporation for purposes such as providing housing for its employees or investment purposes. The corporation assumes the lease and designates individuals (employees or officers) to occupy and manage the unit, subject to the rules and regulations of the cooperative. 3. Family Transfers: Illinois allows for the transfer of proprietary leases among family members in cooperative housing. This type of assumption typically occurs when a unit owner wishes to transfer ownership to a family member or heir, who becomes the new tenant and assumes the rights and responsibilities of the proprietary lease. 4. Subleasing: While not technically an assumption, subleasing is another common practice in cooperative housing in Illinois. It occurs when a tenant leases their unit to another individual, known as the subtenant, for a specific period of time. The original tenant remains responsible for the obligations under the proprietary lease but retains the right to resume occupancy at the end of the sublease term. 5. Termination and Assumption: This type of assumption happens when a cooperative unit owner wishes to terminate their proprietary lease and transfer it to another party. The terminating owner typically assigns their rights and obligations to a new tenant who assumes the proprietary lease upon approval from the cooperative's board. In summary, an Illinois Assumption of Proprietary Lease involves the process of an individual or entity taking over the rights and obligations outlined in a proprietary lease for a cooperative housing unit. The specific processes and types of assumptions may vary based on the co-op's regulations and the circumstances of the lease transfer.
