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.
Louisiana Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that grants permission for the transfer of a proprietary lease and membership in a corporation. This consent is required when a shareholder wishes to assign their proprietary lease rights to another party. In Louisiana, there are several types of Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership, which vary depending on the specific circumstances: 1. General Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership: This type of consent is used for the regular assignment of a proprietary lease and the transfer of membership within a corporation. It ensures that all parties involved are aware of and agree to the assignment. 2. Assignment of Proprietary Lease within the Same Family: This consent caters to situations where the assignment of the proprietary lease is taking place within the same family. It acknowledges that the transfer is for the purpose of maintaining family ownership while appropriately modifying the membership rights. 3. Consent to Membership Transfer in Case of Corporate Restructuring: In cases of corporate restructuring, such as a merger or acquisition, this type of consent is necessary to grant permission for the transfer of membership. It ensures that the corporation acknowledges and approves the membership transfer. 4. Consent to Membership Assignment for Estate Planning Purposes: This specific consent is utilized in estate planning scenarios, where the shareholder assigns their proprietary lease and corresponding membership rights for estate management purposes. It allows for the seamless transition of membership ownership as per the shareholder's estate plan. The Louisiana Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership serves to protect the rights and interests of all parties involved in these transactions. It ensures that the assignment is conducted lawfully and transparently, providing a legal foundation for the transfer of proprietary lease rights and membership within a corporation.
