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.
Title: Understanding Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership Introduction: The Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a critical document in real estate transactions involving cooperative housing corporations. This detailed description aims to shed light on the purpose, significance, and various types of this consent. Keywords: Massachusetts, Consent, Corporation, Assignment, Proprietary Lease, Membership. 1. What is the Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership? The Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document required when a cooperative housing unit's proprietary lease is being assigned or transferred to a new tenant or owner. 2. Importance of the Consent: This consent acts as the official authorization from the cooperative housing corporation to transfer the proprietary lease, ensuring compliance with the organization's governing rules and regulations. It protects the interests of both the corporation and its members when a lease is being transferred. 3. Key Components of the Consent: a. Assignment of Proprietary Lease: This section outlines the terms and conditions under which the proprietary lease can be assigned or transferred to a new party. b. Consent to Membership: This part emphasizes the corporation's approval of the new tenant or owner's membership in the cooperative housing corporation. 4. Types of Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership: a. Individual-to-Individual Assignment: This consent type is used when an individual shareholder of the cooperative housing corporation assigns their proprietary lease to another individual. b. Corporate Entity Assignment: In cases where the assignor is a legal entity, such as a company or partnership, transferring the proprietary lease to another corporate entity, this consent type is applicable. c. Individual-to-Corporate Entity Assignment: When an individual member assigns a lease to a corporate entity, such as a limited liability company (LLC), this type of consent is necessary. 5. Key Considerations for Consent Approval: a. Change in Ownership: The cooperative housing corporation usually verifies the financial and background details of the proposed assignee or new leaseholder before granting consent. b. Membership Obligations: The corporation may evaluate if the new tenant or owner will comply with the corporation's rules, regulations, and obligations as a member, including paying any necessary fees. Conclusion: The Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is an essential document safeguarding the interests of both cooperative housing corporations and their members during lease transfers. It ensures the smooth transfer of proprietary leases while maintaining adherence to the corporation's guidelines. Understanding the different types and considerations included in this consent aids in facilitating lawful and valid assignments.Title: Understanding Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership Introduction: The Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a critical document in real estate transactions involving cooperative housing corporations. This detailed description aims to shed light on the purpose, significance, and various types of this consent. Keywords: Massachusetts, Consent, Corporation, Assignment, Proprietary Lease, Membership. 1. What is the Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership? The Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document required when a cooperative housing unit's proprietary lease is being assigned or transferred to a new tenant or owner. 2. Importance of the Consent: This consent acts as the official authorization from the cooperative housing corporation to transfer the proprietary lease, ensuring compliance with the organization's governing rules and regulations. It protects the interests of both the corporation and its members when a lease is being transferred. 3. Key Components of the Consent: a. Assignment of Proprietary Lease: This section outlines the terms and conditions under which the proprietary lease can be assigned or transferred to a new party. b. Consent to Membership: This part emphasizes the corporation's approval of the new tenant or owner's membership in the cooperative housing corporation. 4. Types of Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership: a. Individual-to-Individual Assignment: This consent type is used when an individual shareholder of the cooperative housing corporation assigns their proprietary lease to another individual. b. Corporate Entity Assignment: In cases where the assignor is a legal entity, such as a company or partnership, transferring the proprietary lease to another corporate entity, this consent type is applicable. c. Individual-to-Corporate Entity Assignment: When an individual member assigns a lease to a corporate entity, such as a limited liability company (LLC), this type of consent is necessary. 5. Key Considerations for Consent Approval: a. Change in Ownership: The cooperative housing corporation usually verifies the financial and background details of the proposed assignee or new leaseholder before granting consent. b. Membership Obligations: The corporation may evaluate if the new tenant or owner will comply with the corporation's rules, regulations, and obligations as a member, including paying any necessary fees. Conclusion: The Massachusetts Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is an essential document safeguarding the interests of both cooperative housing corporations and their members during lease transfers. It ensures the smooth transfer of proprietary leases while maintaining adherence to the corporation's guidelines. Understanding the different types and considerations included in this consent aids in facilitating lawful and valid assignments.
